Hurtubise v. McPherson
Facts
Hurtubise and McPherson owned adjoining land, and Hurtubise needed additional land from McPherson to build a storage shed that would comply with local setback requirements. Hurtubise proposed exchanging part of the front of his property for the portion of McPherson's land needed for the shed, and McPherson agreed by handshake. Hurtubise then obtained a building permit, excavated, and constructed a 300-by-thirty-foot storage shed at a cost of $39,690 while McPherson observed the work for seven to eight weeks without objection. After construction, McPherson objected to the plan showing the shed extended about ten feet onto his lot, demanded $250,000, notified the town of the encroachment, and Hurtubise sued for specific performance when the permit was revoked and demolition was threatened.
Issue
May a court specifically enforce an oral agreement to exchange land notwithstanding the Statute of Frauds where one party reasonably relied by constructing a building while the other silently observed, and was the agreement sufficiently definite even though the exact parcel dimensions and boundaries were not fixed at the outset?
Rule
Although the Statute of Frauds generally bars enforcement of an oral contract for the sale or conveyance of land, such an agreement may be specifically enforced if the party seeking enforcement, in reasonable reliance on the contract and on the continuing assent of the party to be charged, has so changed position that injustice can be avoided only by specific enforcement. Contract terms must be sufficiently definite to ascertain the parties' obligations, but a contract remains enforceable if its meaning can be determined with reasonable certainty from the transaction and surrounding circumstances; indefiniteness defeats enforcement only when construction becomes futile.
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If Nina sues for specific performance of the oral exchange, which is the strongest basis for enforcement?