Suzy Anders enters into an oral contract to purchase a tract of land from Bill Hermes. The land is considered worthless, but Anders feels that she has discovered a possible usage that would drastically increase the value of the land. To assure herself
of the potential value of the land, Anders orally hires an attorney to investigate the title and records associated with the land in question. Before gaining any information from her attorney, Anders orally contracts with a builder to construct a huge building on the site. Because of the size of the project, a completion time is difficult to predict. Anders now discovers that the land is indeed useless, a fact that she obtains through information from her attorney. Anders now refuses to honor her contracts with Hermes, her attorney, and the builder. Must Anders honor her contractual agreements?
All contracts concerning the sale of land must be evidenced by a writing to be enforceable. The purchase agreement that Anders made with Hermes was oral, and it concerned the purchase of land. The initial oral contract is, therefore, unenforceable under the statute of frauds.
When Anders hired an attorney to investigate the property, it was a collateral agreement not directly concerned with real property per se and thus not subject to a statute of frauds application.
A construction project concerning the completion of a building must be evidenced by a writing under the statute of frauds because real property is involved. If this hurdle could be overcome, the length of time to conclude the project is only an issue if it would be impossible to complete within a year.?
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