Problem
Part I: Steve is a real estate broker and has known Robert for a long time. Robert asked Steve to help him sell his ranch and Steve agreed, but Robert refused to sign a formal listing agreement. "You know doggone well, you know me, I'm not going to cheat you out of a commission," said Robert. Steve having been in the real estate business for a long time, took out one of his business cards and jotted down the basic terms of the listing on the back of the card. He wrote down the price, deposit amount, and the terms of the promissory note, along with the phrase, "6% comm." Steve then asked Robert to initial and date the card. Robert wrote, "3/24/65 GWF." Steve found a buyer for the ranch, but Robert refused to pay Steve a commission. When Steve sued, Robert argued that the notes on the business card weren't enough to comply with the statute of frauds.
i. Did the statute of frauds require more than the notes? Explain.
Part II: Classify each of the following contacts as void, voidable, unenforceable, or valid, and explain your answer.
A contractor agrees in writing to build a triplex on Dudley's vacant lot. After the contract has been signed, the contractor discovers the lot is zoned for single-family residential use only. What is the legal status of the contract?
Stanton lists her commercial property with a broker, but they don't put their agreement in writing. Within three weeks, the broker finds a buyer for the property. At closing, Stanton refuses to pay the brokerage commission she agreed to when the listing was negotiated. What is the legal status of the contract?
A property owner is forced to sign a purchase agreement under threat of physical harm. What is the legal status of the contract?
Six months ago, Dunn was declared mentally incompetent by a court. Now Dunn has just signed a contract to sell his home. What is the legal status of the contract?
A broker, abusing the trust a property owner has placed in her, convinces the owner to list his home at a price he later determines to be well below market value. When he asks the broker to release him from the listing contract, the broker refuses. What is the legal status of the contract?
Miller is buying Gilman's house for $650,000. They have signed a written purchase agreement. Both parties have contractual capacity and freely consented to the terms of the contract. What is the legal status of the contract?
A seller, after accepting a written offer, decides not to go through with the sale of his property. Five years later, the prospective buyer decides that he will file an action to compel the seller to perform. What is the legal status of the contract?