Khan v. Bakhsh
Annotate this CaseAppellants agreed to purchase a restaurant and real property on which the restaurant was located from Respondent. After Appellants failed to make payments on the promissory note, Respondent filed an action against Appellants to recover the principal and unpaid interest. According to Respondent, a third buy-and-sell agreement between the parties was the operative agreement. But during trial, Appellants presented evidence that a fourth written agreement, which was allegedly later destroyed by Respondent or his brother, existed containing the agreed-upon purchase price and terms of the sale. The district court concluded that Appellants' evidence of the destroyed fourth agreement was barred by the statute of frauds because Appellants failed to produce the written agreement. The court then found that Appellants breached the third agreement and entered judgment for Respondent. The Supreme Court reversed, holding that the statute of frauds does not apply to a writing that is subsequently lost or destroyed, and oral evidence is admissible to prove the existence and terms of the lost or destroyed writing. Remanded.
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