A West Virginia licensed salesperson represents a buyer who makes an offer on a property. The seller's agent calls and says the seller will accept the offer only if the buyer agrees to a verbal side agreement to leave certain personal property that was not listed in the purchase agreement. The buyer agrees verbally. At closing, the seller removes the personal property, claiming it was never part of the written contract. Under West Virginia law, which statement is most accurate regarding the verbal side agreement?
Correct Answer
D) The verbal side agreement is unenforceable because agreements modifying a real estate contract must be in writing under the Statute of Frauds
Under the West Virginia Statute of Frauds (W. Va. Code § 36-1-3) and the parol evidence rule, modifications to a written real estate contract must themselves be in writing to be enforceable. A verbal side agreement that modifies or supplements the terms of an executed purchase agreement is generally unenforceable. Additionally, the parol evidence rule prevents the introduction of prior or contemporaneous oral agreements to vary the terms of a written contract. The buyer should have insisted on a written addendum to the purchase agreement.
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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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