Jamison Orally Contracts to Sell Her House to Fagan

question 23

Short Answer

Jamison orally contracts to sell her house to Fagan. Later, Jamison changes her mind and refuses to transfer the property. Fagan cannot take legal action against Jamison because the contract is ____________________.

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Definitions:

Price Floor

A price floor is a government-imposed minimum price set above the equilibrium price for a product or service, aimed to ensure producers receive a fair return.

Surplus

The situation in which the quantity of a good produced exceeds the quantity demanded, often leading to a decrease in prices.

Production

The method of producing products and services by merging work, materials, and technology.

Inefficient Allocations

Situations where resources are not optimally distributed, often leading to waste or unmet potential within an economy or system.