Issue – Pat wanted to purchase a home and would eventually have the means to do so. Dan was able to purchase the home and agreed to assist Pat in the purchase of the hoe of her choice with the verbal promise of a just commission when Pat received the finances that were coming to her. Pat found the home, paid Dan a stipend during the time that she occupied the home as well as made renovations to the home. When the time came for Pat to pay for the home outright, Dan refused to convey the home to Pat. Can Dan refuse to convey the home to Pat after the oral agreement has been made, the renovations have been made, and the cashing of the checks have been made?

Rule – There are multiple rules that can be applied here in this case.

1. Specific performance – relief that requires the seller who breached the contract, in this case an oral contract, to fulfill the terms of the contract. If the seller is able to do so, but refuses to convey, the buyer am bring suit. The court will generally order the seller to convey the land to the buyer.
2. Real Estate Contract – are typically bilateral contracts and should be in writing in order to be enforceable.

Application – Pat and Dan entered into an oral agreement. In some circumstances, this would be binding, however since this is a real estate transaction, it does not make the transaction binding. If Pat wanted to ensure that the home she was going to purchase would definitely convey, she should have gotten a written contract in place.

Dan allowed Pat to make renovations to the home that she intended to