You Verbally Agree to Buy a House for $250,000

question 59

Multiple Choice

You verbally agree to buy a house for $250,000. When the contract is prepared, the price is accidentally typed in as $25,000 rather than $250,000, but no one notices it until after you and the seller sign the document. At that point, you claim you only have to pay $25,000 and you claim that was the price you had agreed to originally. The court will say you are:

• A) correct; under the Statute of Frauds, written documents control, not oral statements
• B) correct; under the Statute of Frauds, written documents for real estate control the deal
• C) incorrect; the consideration ($25,000) is insufficient given the value of the house
• D) incorrect; promissory estoppel requires the price to be $250,000
• E) none of the other choices

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Definitions:

Economic Sense

Activities or decisions that are justifiable in terms of profitability, efficiency, or other measures of economic benefit.

Packing Slip

A document included with a shipment that lists the contents and sometimes the order details, used for verifying receipt of goods.

Receiving Department

The area in a business where goods and materials are received from suppliers and checked for quality and quantity.

Receiving Process

The sequence of actions taken to accept goods into a storage facility, including inspection, documentation, and stocking.