An oral contract to sell a house is a binding agreement between two parties. However, to be enforceable, certain conditions must be met. In this article, we will discuss the requirements that must be fulfilled to make an oral contract to sell a house binding.
Firstly, the terms of the agreement must be clear and definite. In other words, the parties involved must have a common understanding of the terms of the sale, including the price and the closing date. If there is any ambiguity or uncertainty in the terms of the agreement, the contract may not be enforceable.
Secondly, the parties must have the capacity to enter into a contract. This means that they must be legally eligible to do so. For example, if one of the parties is a minor or is mentally incapacitated, the contract may not be enforceable.
Thirdly, there must be an exchange of consideration. Consideration is something of value that is promised or given in exchange for something else. In the context of a contract to sell a house, consideration is usually the payment of the purchase price. If there is no exchange of consideration, the contract may not be enforceable.
Fourthly, the contract must not be illegal or against public policy. For example, if the sale of the house is in violation of local zoning laws or building codes, the contract may not be enforceable.
Lastly, the contract must be supported by evidence. This means that the parties must be able to prove that an agreement was made. Evidence can include emails, letters, or witnesses who can attest to the agreement.
In summary, an oral contract to sell a house can be binding if the terms of the agreement are clear and definite, the parties have the capacity to enter into a contract, there is an exchange of consideration, the contract is not illegal or against public policy, and the contract is supported by evidence. It is important to note that oral contracts are often harder to enforce than written contracts, so it is always advisable to put the terms of a property sale in writing.