Bill and Doug discuss Bill’s desire to buy Doug’s house. Verbally, they settle on a price of $250,000, with a down payment of $50,000 and payments on the balance monthly of $1400. Doug is leaving the state, so he tells Bill that Bill can move into the house now, if he makes the down payment, and start making the payments. Bill moves in, makes the down payment, and makes payments for 4 months. After 4 months, Doug returns and hands Bill a check for $50,000 and tells him he has a better offer on the house and will be selling it to another party. Bill refuses the check and tells Doug that the sale is done. Doug says the sale is not in writing and therefore not enforceable, and that he offered to return the check to Bill so the deal is clearly off. Bill says he was making the payments on the house, and Doug tells him that the payments were rent.
Doug and Bill dispute whether the sale to Bill is enforceable. Explain whether or not the sale is enforceable and why or why not.
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