Verbal Agreement Land Sale

In matchmove Ltd v Dowding and Church, two former friends first agreed to sell a building plot and a meadow on the basis of an oral agreement. A recent supreme court ruling is a further reminder of the importance of completing all the necessary formalities when concluding an agreement, especially with regard to the sale of real estate. Finally, the right to servitude was abandoned through the prairie and the buyers then paid the seller the agreed amount for the prairie, although there was no written contract between them for the sale of the prairie. However, at that time, the parties disintegrated and the seller only agreed to sell half of the prairie and returned half of the amount paid. Subsequently, the purchasers brought an action to determine that the grassland was fiduciary to them. Therefore, if the property to which it relates is land within the meaning of the law, an option cannot be valid if it is not established in writing. « An oral contract is not worth the paper on which it is written » (Samuel Goldwyn) The High Court at first instance found that the seller operated on the basis that « an agreement is an agreement ». His justice of honour McCahill QC said: « . His word was his attachment. That was his reputation. That`s how he did campaign business. The court ruled that the buyers trusted him to keep their word, and that they were « ready to be bound in the same way… ». The friends agreed orally on a price of £120,000 for the building plot and £80,000 for the prairie and the couple paid a deposit of £66,000 to Mr Francis as a sign of good faith.