Benito Brino owned real property that he leased to Salvatore and Linda Gabriele. During the lease, the

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Benito Brino owned real property that he leased to Salvatore and Linda Gabriele. During the lease, the Gabrieles attempted to purchase the property from Brino. Both parties agreed on a purchase price of $565,000 with a closing date of September 15, 2001. However, the Gabrieles were not able to obtain the full amount in loan financing from the bank, so they made a counteroffer to purchase for $450,000, which Brino rejected. The Gabrieles later obtained the full $565,000 from another lending institution and drafted an addendum to the July sales agreement that altered the closing date to May 5, 2002. Brino orally accepted the terms of the agreement, but the document was not signed until May 16, 2002, after the closing date. Consequently, the bank refused to acknowledge the addendum’s validity. Thereafter, the Gabrieles drafted a second sales agreement with the same terms as the July agreement, except that the second agreement did not include a closing date but stated that the effective date would be the signing date. Both parties signed the agreement on June 16, 2002, and the bank accepted the agreement and agreed to provide the loan. The Gabrieles informed Brino that they were ready to close, but Brino did not convey title of the property to the Gabrieles. The Gabrieles brought suit against Brino, seeking specific performance, but Brino argued that the agreement was not enforceable as it did not satisfy the statute of frauds, primarily because the agreement did not designate the seller. In response, the Gabrieles claimed that their obtaining financing was partial performance of the agreement. How did the court resolve this issue with regard to the statute of frauds?

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Dynamic Business Law

ISBN: 9781260247893

5th Edition

Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs

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