UBE Question of the Day
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Today's Question:
A woman owned a three-acre tract of land containing a small residence. The woman rented the residence to a friend at a rent of $1,000 per month. Several years later, the parties orally agreed that the friend would purchase the land and residence for the sum of $240,000, payable at a rate of $2,000 per month for ten years. The friend would also pay the real estate taxes and the cost of insuring and maintaining the property. The woman agreed to give the friend the deed to the property after five years had passed and $120,000 had been paid. She further agreed to accept at the five-year mark a note secured by a mortgage for the balance. Thereafter, the friend continued in possession and performed his obligations in compliance with the oral agreement. In addition, he made improvements to the property in the total amount of $10,000. When the friend paid a total of $120,000, he tendered a proper note and mortgage to the woman and demanded delivery of the deed. Although the woman did not deny the oral agreement, she advised the friend that she changed her mind and refused to complete the transaction. The friend commenced an action for specific performance, and the woman pled the Statute of Frauds as her defense. If the woman prevails, what is the most likely reason?
(A) It is impossible for someone in the friend’s position to overcome the absence of a written agreement.
(B) The actions and payments of the friend were consistent with his being a tenant with an oral agreement.
(C) The friend failed to secure the woman’s approval for the improvements that he made.
(D) The woman did not receive an unconscionable benefit, and, therefore, the friend is not entitled to equitable relief.
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