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The tenant fully complied with all of the obligations she had undertaken. She made some structural modifications to Blackacre. Blackacre is now worth 50% more than it was when the landlord and the tenant made their oral agreement. The tenant made her financing arrangements and was ready to complete the purchase of Blackacre, but the landlord refused to close. The tenant brought an appropriate action for specific performance against the landlord to enforce the agreement.
A landlord owned Blackacre in fee simple. Three years ago, the landlord and a tenant agreed to a month-to-month tenancy with the tenant paying the landlord rent each month. After six months of the tenant's occupancy, the landlord suggested to the tenant that she could buy Blackacre for a monthly payment of no more than her rent. The landlord and the tenant orally agreed that the tenant would pay $25,000 in cash, the annual real estate taxes, the annual fire insurance premiums, and the costs of maintaining Blackacre, plus the monthly mortgage payments that the landlord owed on Blackacre. They further orally agreed that within six years the tenant could pay whatever mortgage balances were then due and the landlord would give her a warranty deed to the property. The tenant's average monthly payments did turn out to be the same as her monthly rent.
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A is incorrect. The Statute of Frauds is applicable to the transfer of land, requiring that the agreement be in writing, signed by the party to be charged, and contain the essential terms of the agreement. The only time when this requirement is excused is when partial performance takes a contract out of the situation, as is the case in this fact pattern.
B is incorrect. The tenant's partial performance, as described above, removes this scenario from tenancy characterization.
D is incorrect. This answer choice misstates the law. The Statute of Frauds always applies to the sale of land unless preempted by partial performance on an oral contract.