Stan orally agreed to sell his house to Humphrey and Humphrey made a down payment. Humphrey wanted it ready for his family quickly, so he had a new roof put on, new carpeting installed, and renovated the kitchen. Stan now thinks the place looks great and has decided not to sell. A business law student told him he could refuse to sell because the agreement was oral. Can he? Explain


In general, the statute of frauds would require that a promise to convey land be written. However, under the part performance exception, courts will enforce the sale because of Humphrey's detrimental reasonable reliance. He acted on Stan's promise by substantially improving the property; therefore promissory estoppel will prevent Stan from repudiating.

Business

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