Discussion Questions

Real Estate Contracts 

 

Jackson paid Brady $700 for a 90 day option to purchase Brady's 160 acre farm for $132,000. The option agreement was in writing and signed by both parties. The agreement referred only to the option, its period, a legal description of the farm, and the purchase price. Thirty days later, Jackson wrote Brady, "I hereby exercise my option to purchase your farm for $132,000, subject to your replacing the well pump and related plumbing fixtures." Is there a contract? Is the option still valid? 



Guided Response: Discuss the key elements necessary in the formation and creation of a valid contract. Discuss the validity of options, explaining why the option might be necessary for this particular buyer. Suggest some key defenses that Brady could assert to challenge to validity of the contract. 

 

Acquisition of Title by Adverse Possession

 

Lester, a California resident, owns a parcel of property in Arkansas. Lester has not visited the property in 22 years but has paid taxes on it. When Lester finally returns to the property, he discovers that Brunyan has been using the lot for 21 years as a storage yard for his auto wrecking business. Lester brings suit to have Brunyan ejected. Brunyan claims title by adverse possession. What result?