Meaning of Doctrine of Part-performance
The doctrine of part-performance is a principle of equity that is often used to enforce oral agreements for the transfer of immovable property, even though such agreements are not legally enforceable under the Statute of Frauds.
The doctrine of part-performance is used to enforce oral agreements for the transfer of immovable property. If a person has taken possession of the property and/or made improvements to it in reliance on the oral agreement, the court may enforce the agreement to the extent that the person has performed their part of the bargain. This principle is meant to prevent unfairness and protect the reasonable expectations of the parties, especially when one party has already fulfilled their obligations under the oral agreement.
Requirements of Doctrine of Part Performance
The doctrine of part-performance has three key requirements:
- There must be an oral agreement for the transfer of immovable property.
- The person seeking enforcement of the agreement must have taken possession of the property and/or made improvements to it in reliance on the agreement.
- The person seeking enforcement must have performed their part of the bargain.
Purpose of Doctrine of Part-performance
The purpose of the doctrine of part-performance is to prevent unjust enrichment and to protect the reasonable expectations of the parties. It is based on the principle that it would be unfair for a party who has performed their part of an oral agreement to be left without a remedy, simply because the agreement is not in writing.
However, the doctrine of part-performance is not an absolute rule and its application is subject to certain limitations. For example, the court will not enforce an oral agreement if it is illegal or against public policy. In addition, the doctrine does not apply if the party seeking enforcement has not acted in good faith or if the performance is incomplete or partial.
