1. Sandy orally agreed to sell Rolf her house for $400,000.00. Rolf gave Sandy a check for $10,000.00 as deposit on the house. They agreed to complete the sale on a specific day in 3 weeks when Rolf would pay Sandy the remaining $390,000.00 and Sandy would give the deed for the house to Rolf.
2 weeks later Sandy went to Rolf’s home, returned his $10,000.00 check, and told Rolf she had changed her mind about selling her house.
Rolf believes they had a binding sales contract and that Sandy must sell him the house because he gave Sandy a deposit for the purchase of the house. Sandy believes she and Rolf did not have a binding contract.
What would you conclude about the agreement between Sandy and Rolf?
a. Sandy and Rolf had a binding contract; both agreed to the sale and oral contracts can be enforceable.
b. Sandy and Rolf had a binding contract because Rolf gave consideration for the contract by giving Sandy the $10,000.00 deposit.
c. Sandy and Rolf did not have a binding contract as the contract had not been fully performed.
d. Sandy and Rolf did not have a binding contract; the contract needed to be written to be enforceable under the circumstances.