LAW AND EQUITY ACT (Section 59)

[RSBC 1996] CHAPTER 253

Enforceability of contracts

59 (1) In this section, "disposition" does not include

            (a) the creation, assignment or renunciation of an interest under a trust, or

            (b) a testamentary disposition.

      (2) This section does not apply to

             (a) a contract to grant a lease of land for a term of 3 years or less,

             (b) a grant of a lease of land for a term of 3 years or less, or

             (c) a guarantee or indemnity arising by operation of law or imposed by statute.

      (3) A contract respecting land or a disposition of land is not enforceable unless

             (a) there is, in a writing signed by the party to be charged or by that party's agent, both an indication that it has been made and a reasonable

                    indication of the subject matter,

             (b) the party to be charged has done an act, or acquiesced in an act of the party alleging the contract or disposition, that indicates that a contract

                    or disposition not inconsistent with that alleged has been made, or

             (c) the person alleging the contract or disposition has, in reasonable reliance on it, so changed the person's position that an inequitable result,

                    having regard to both parties' interests, can be avoided only by enforcing the contract or disposition.

             (4) For the purposes of subsection (3) (b), an act of a party alleging a contract or disposition includes a payment or acceptance by that party or on

                    that party's behalf of a deposit or part payment of a purchase price.

      (5) If a court decides that an alleged gift or contract cannot be enforced, it may order either or both of

             (a) restitution of a benefit received, and

             (b) compensation for money spent in reliance on the gift or contract.

      (6) A guarantee or indemnity is not enforceable unless

             (a) it is evidenced by writing signed by, or by the agent of, the guarantor or indemnitor, or

             (b) the alleged guarantor or indemnitor has done an act indicating that a guarantee or indemnity consistent with that alleged has been made.

      (7) A writing can be sufficient for the purpose of this section even though a term is left out or is wrongly stated.