Which of the following scenarios is an example of partial performance?

Partial performance refers to the situation where one party has taken steps to fulfill their obligations under a contract, even if the entire contract has not been completed, and often occurs in the context of agreements that are not fully enforceable due to a lack of a written documentation required by the Statute of Frauds. This scenario demonstrates that parties can still have a valid arrangement based on the actions they’ve taken, even if all terms are not yet satisfied or formalized in writing.

When one party partially completes certain agreed-upon terms of a contract—such as beginning construction on a property or making a payment—this shows their intent to follow through with the contract. It can also lead to an enforceable contract since the actions indicate that the parties are relying on the agreement.

In contrast, agreeing verbally (the first scenario) does not demonstrate performance; it simply reflects negotiation or intent. Making a deposit (the third scenario) might suggest commitment, but it does not constitute completion of terms. Lastly, a loan being granted verbally (the fourth scenario) is a commitment to lend rather than a performance of agreed actions. Thus, the correct answer for an example of partial performance is where completing certain terms occurs, regardless of the absence of a written contract.