Beaver v. Brumlow

Michael and Karen Brumlow orally agreed to buy a parcel of the Beavers' 24-acre tract while Michael worked for the Beavers' horse-transport business; Michael and Warren Beaver even walked the property to mark its boundaries. The Brumlows cashed out retirement accounts, placed a mobile home on the parcel, spent about $85,000 on improvements, and moved in, all without a signed contract, because the Beavers worried finalizing a sale on paper would trigger a due-on-sale clause in their mortgage. When the Brumlows pressed for a formal contract, the Beavers kept saying they'd "work it out." No price or closing date was ever set, though the Brumlows agreed to pay fair market value. Nearly three years later, after the Brumlows had left the Beavers' employment for a competitor and the relationship soured, the Beavers tried instead to lease the land to the Brumlows and attempted to eject them. The Brumlows sued to enforce the oral agreement; the Beavers invoked the statute of frauds. The trial court ordered specific performance, and the Beavers appealed.