Ariel Pays Newton a $17 000 Deposit as Part Performance

question 48

Multiple Choice

Ariel pays Newton a $17 000 deposit as part performance of an oral contract for the sale of land and that Ariel takes possession of the land at the time of possession.According to the terms of their agreement, Ariel is to pay the balance 30 days after taking possession, failing which Newton is allowed to keep the deposit and Ariel must vacate.Suppose that the contract of sale does not complete as Newton fails to provide a transfer of title even though Ariel tenders the whole amount on the thirtieth day after possession was taken by Ariel.Which of the following is TRUE in most Canadian jurisdictions?

• A)Ariel can enforce the contract of sale against Newton.
• B)Newton has a defence to enforcement of the contract based on the Statute of Frauds.
• C)Newton can refund the deposit and take the money back because the parties' actions were not part performance of a contract.
• D)Ariel can only sue for return of the deposit.
• E)Ariel will lose the deposit, she must pay rent to Newton for the month of possession, and she must then vacate the land.

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