Ariel Pays Newton a $17 000 Deposit as Part Performance

question 13

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 as the actions of the parties was not part performance of a contract.
• D)Ariel can only sue for return of the deposit.
• E)Ariel will lose the deposit and must pay rent to Newton for the month of possession and then must vacate the land.

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Definitions:

Third Unit

In economic terms, it refers to purchasing or producing a third unit of a good or service, often discussed in the context of marginal analysis.

Socially Optimal

A state or outcome of an economic or social process that maximizes societal welfare, taking into account all costs and benefits to society.

Fair-Return

A principle whereby regulated entities are allowed to set prices that cover their costs and provide a reasonable profit.

Price-Discriminating

A pricing strategy where a seller charges different prices for the same product or service to different customers based on various factors.