Frances Has Lived in an Apartment for Ten Years When

question 16

Essay

Frances has lived in an apartment for ten years when she decides to buy a house.Her one-year lease will end on May 1.On April 15,she orally con?tracts to buy Smith's house for $100,000,with the closing (transfer of the deed)to take place on June1.Smith's lawyer,who is out of town on vaca?tion,is to draft a written contract of sale on his return to his office on May 15.Because Frances's lease is terminating,Smith agrees to let her take possession of the house on May 1 if Frances gives him a "down payment" on the house of $5,000.Frances agrees and gives Smith the $5,000.She moves into the house on May 2,and the following weekend plants trees in the back yard.On May 10,Smith receives a written offer from Green to buy Smith's house for $120,000.Smith accepts Green's offer,asks Frances to move out of the house,and tries to return the $5,000 to Frances.Frances claims that she has an enforceable contract to buy the house.Smith claims that any such contract must be in writing to be en?forceable under the Statute of Frauds.Who is correct and why?

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Definitions:

Discretionary Bonuses

Additional pay that is awarded at the employer's discretion and is not guaranteed, often based on company or individual performance.

Executive Profit Sharing

A compensation mechanism where executives receive a portion of a company's profits in addition to their regular salary.

Decertification Request

A formal application to remove the certification or recognition of a labor union as the bargaining representative of a group of employees.

Collective Bargaining

The process of negotiating employment terms between an employer and a group of employees, often represented by a union, to reach a labor agreement.