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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?
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.
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