Question

Martha owned a home and adjoining vacant lot in a subdivision located in Columbus, Ohio. Bill owned a home next to the vacant lot and wanted to obtain the lot so he could build a garage. Martha and Bill entered into a verbal agreement whereby Martha agreed to sell the lot to Bill for $15,000. Bill paid the $15,000 to Martha and she accepted the money. Bill started to build a garage on the lot but Martha had second thoughts. She returned the $15,000 to Bill and claimed there was no binding contract because there was no written agreement. Bill sues Martha.

What is Martha's best legal argument? Explain your answer completely.

Answer 1

The oral agreement between two parties could be a legal binding contract if the goods or services concerned to contract is legal. However, a few contracts requires some material evidence like written documents in case of purchase of a house or land as sometimes written contracts are required by law or statutory authorities within various jurisdictions. So,Bill will not succeed suing Martha, as there does not exists any written agreement towards sale of lot.

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