This section is from the book "The Law Of Land Contracts", by Asher L. Cornelius. Also available from Amazon: Michigan Law Of Land Contracts.
-No action at law can be maintained on a verbal contract partly performed, as the doctrine of part performance is purely a creation of equity and is not recognized at law. It therefore in writing and signed by the wife as required by Sec. 2, Article 14, Const. But where the son had for eleven years performed his part of the contract, the court decreed the margin above the homestead exemption to be subject to a lien for the value of his services, together with any money or property he may have furnished, less the amount he may have received.
Harrison v. Eassom, 208 Mich. 685. Specific performance of a contract, whether written or oral, is not a matter of strict legal right, but rests in the sound discretion of the court. Where possession is taken under an oral contract in order to become an element of part performance, such possession must be exclusive and notorious under a claim of ownership. Where plaintiff went into possession of land as defendant's tenant and continued in unbroken possession from the time of entry, merely continuing their possession under a different claim of right than the tenancy under which they were let in, could not in itself constitute an act of part performance of the oral contract conveyed. Relief in this case denied.
Kelsey v. McDonald, 76 Mich. 188. Where plaintiff sued to recover $5,000 which he had paid on an oral agreement for the purchase of certain lands, a verdict was directed in his favor. The defendant contended that the contract was taken out of the statute of frauds by such payment and the acceptance of a deed for the land and by taking possession of the same, the court held that these acts were not sufficient part performance to entitle defendant to prevail as to the validity of the contract.
Kinyon v. Young, 44 Mich. 339. In this case it was held that to entitle a complainant to enforce a parol contract as against the owner of a legal title, you must show: 1st-A contract, the terms of which are clear and complete so that no reasonable doubt can exist respecting its enforcement according to the understanding of the parties, if enforcement seems equitable. 2nd -Such acts of part performance as according to equitable principles will justify this enforcement, notwithstanding the failure to comply with the statute of frauds in making it. 3rd-Payment of the purchase price.
Dragoo v. Dragoo, 50 Mich. 573 Specific performance cannot be granted on the basis of the parol contract unless there have been important acts of part performance raising strong equities in complainant's favor.
Peckham v. Walsh, 49 Mich. 181. Holding that it is not payment alone which will take the case out of the statute, but this with possession and acts done as owner in reliance thereon that cannot ordinarily be compensated in damages which entitle a party to the enforcement of the verbal agreement relating to the sale of lands.
follows that no distinctively legal action can be maintained upon an oral contract which is within the statute of frauds.69 When a vendor disposes of property to a bona fide purchaser for value, without notice, the vendee may maintain a bill in equity to recover damages from the vendor.70 The jurisdiction rests upon the ground that equity alone can grant relief.
 
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