A buyer submits a written offer to purchase a home in Lexington, Kentucky for $285,000. The seller verbally tells the buyer's agent, 'I accept the offer,' but never signs the written contract. The buyer later tries to enforce the agreement. Under Kentucky law, what is the most likely outcome?
Correct Answer
D) The contract is unenforceable because real estate contracts must be in writing and signed under KRS 371.010
Under KRS 371.010, Kentucky's Statute of Frauds requires that contracts for the sale of real property be in writing and signed by the party to be charged (here, the seller). A verbal acceptance, even communicated to a licensed agent, does not satisfy this requirement. Because the seller never signed the written contract, there is no enforceable agreement, and the buyer cannot compel the sale.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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