Donna entered into an oral contract with Ava to purchase a house from Ava,with $500 per month payments for the next 10 years.Donna moved into the house,remodeled it,and did extensive repairs.At the end of 10 years,Ava refused to convey title to the house to Donna and produced evidence at the resulting trial that the fair market rental value for the house averaged $800 per month over the 10-year period.Does Donna have an enforceable contract?
A)Yes,Donna is entitled to the ownership of the house because oral contracts for the sale of land are enforceable under the Statute of Frauds.
B)No,Donna cannot claim ownership of the house since there was no written contract with Ava.
C)Yes,Donna can claim ownership of the house based on equitable estoppel.
D)No,Donna is not entitled to the ownership of the house since she was paying below the fair value.

Question

Quizplus · Accepted Answer

Although there was no written contract, Donna can rely on equitable estoppel as a defense. She fully performed her part of the bargain by making all monthly payments and improving the property. It would be unjust for Ava to back out of their agreement after Donna relied on it for 10 years. The fact that the rent value was higher than Donna's monthly payment is not relevant in this case.

Donna Entered into an Oral Contract with Ava to Purchase