Statute of Frauds

Fritz Hoffman and Fritz Frey contracted the Sun Valley Company (Company) about purchasing a 1.64- acre piece of property known as the Rued Mountain Property, located in Sun Valley, Idaho, from Company. Mr. Conger, a representative of Company, was authorized to sell the property, subject to the approval of the executive committee of Company. Conger reached an agreement on the telephone with Hoffman and Frey, whereby they would purchase the property for $90,000, payable at 30 percent down, with the balance to be payable quarterly at an annual interest rate of 9.25 percent. The next day, Hoffman sent Conger a letter confirming the conversation. The executive committee of Company approved the sale. Sun Valley Realty prepared the deed of trust, note, seller’s closing statement, and other loan documents. However, before the documents were executed by either side, Sun Valley Company sold all its assets, including the Ruud Mountain property, to another purchaser. When the new owner refused to sell the Rued Mountain lot to Hoffman and Frey, they brought this action for specific performance of the oral contract.

Question:

Who wins?