Oral Agreements for Dealings with Land
According to the Statute of Frauds,1 a
contract regarding the use of land must be in writing. This
includes agreements for the purchase, sale, lease, etc. of land.
What happens when you want to enforce an oral agreement concerning
land that is not in writing? According to the Ontario Court of Appeal
("ONCA") in Erie Sand and Gravel
Limited v. Tri-B Acres Inc., 2009 ONCA 709
("Erie Sand"), an oral
agreement to deal with land may be upheld by the Court if a party
is able to demonstrate that the conduct of the parties shows that
the contract existed. This is called the doctrine of part
performance.2
Erie Sand and Part Performance
In Erie Sand, the plaintiff and the defendant orally
agreed to the purchase and sale of land ("the
Agreement") which included the acreage to be sold,
the price per acre and the closing date. There was a third party
with a right of first refusal, which made the Agreement contingent
on the third
