Lonnie and Pamela have been negotiating a contract over the phone for a prime piece of property. Pamela believes that they have a contract due to all of Lonnie's assertions and begins to clear the trees and brush. If Lonnie tries to indicate that there is not a contract because all the assertions are oral, Pamela could use the ________ exception to prove there is in fact a contract.
A) substantial performance
B) partial-performance
C) sales substantiation
D) the purchase proof rule
E) oral proof

Question

Quizplus · Accepted Answer

The partial-performance exception allows a party to prove the existence of an oral contract in certain situations, especially in real estate transactions, when one party has begun performing based on the belief that a contract exists. Pamela's actions of clearing the trees and brush based on Lonnie's assertions could fall under this exception, allowing her to argue that a contract does indeed exist despite it being oral.

Lonnie and Pamela Have Been Negotiating a Contract Over the Phone