MBE Rules · Contracts
Part performance exception (land)
The rule
An oral land sale contract becomes enforceable when the buyer has (1) taken possession AND (2) either paid all or part of the price OR made substantial improvements. The acts must be unequivocally referable to the alleged contract.
In plain English
If someone starts acting like they own a piece of land after an oral agreement, like moving in or making big changes, the sale might be enforceable even without a written contract.
Worked example
The buyer moves into a house and builds a new garage after an oral agreement to buy the land. These actions show the buyer believes they own the land, making the oral contract enforceable.
Memory hook
Land in hand, actions speak. Oral deals can stick if possession + price or improvements are clear.
The trap
Students think: any payment suffices. Wrong, because it must be linked to the contract. The actual test is possession + clear act like payment or improvement.
How examiners test it
The MBE loves: buyer took possession, made partial payment. Trap: students ignore improvements or possession must tie to contract.
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