Question

In: Accounting

Suzy Bartles enters into an oral contract to purchase a tract of land from Bill Hermes....

Suzy Bartles enters into an oral contract to purchase a tract of land from Bill Hermes. The land is considered worthless, but the Bartles feels that she has discovered a possible usage that would drastically increase the value of the land. To assure herself of the potential value of the land, Bartles orally hires an attomey to investigate the title and records associated with the land in question. Before gaining any information from her attorney, Bartles orally contracts with the builder to construct a huge building on the site. Because of the size of the project, a completion time is difficult to predict. Bartles now discovers that the land is indeed useless, afact that she obtains through information from her attomey.

Bartles now refuses to honor her contract with Hermes, her attorney, and the builder. Must Bartles honor her new contractual agreements? Please support your answer with legal analysis.

Solutions

Expert Solution

Refer to the below images for the above mentioned question, in a detailed way of explanation.


Related Solutions

1. An oral contract for the transfer of an interest in land may be enforced if...
1. An oral contract for the transfer of an interest in land may be enforced if the party seeking enforcement has so changed his position in reasonable reliance on the contract that a court can prevent injustice only by enforcing the contract. a. True b. False 2. The 2001 Revisions to Article 1, adopted by all fifty states, have deleted the requirement that contracts for the sale of other personal property for more than $5,000 be in writing. a. True...
You have decided to purchase a small tract of land for building a new home on...
You have decided to purchase a small tract of land for building a new home on the outskirts of town. You have some money available but need a loan of $18,000 to make the purchase. The land will be owner-financed over 4 years with end-of-year payments. The interest rate is 9%. For each of the payback methods given, determine the present worth of the loan payments made by the borrower, using TVOM rates of 5%, 9%, and 13% Method 1:...
1. Jerome, Sheila, Gary, and Ella agreed to purchase a tract of land and make it...
1. Jerome, Sheila, Gary, and Ella agreed to purchase a tract of land and make it available for use as a free playground for neighborhood children. They called the enterprise Meadowbrook Playground. Jerome and Gary improperly hung one of the playground swings, and a child was injured. The suit was brought against Meadowbrook Playground. Can damages be recovered? 2. A joint venture is a(an): 3. 1. Edwin Edwards and Karen Davis owned EEE, Inc., which owned three convenience stores, all...
You can purchase a tract of land for $75,000 that you believe you can develop and...
You can purchase a tract of land for $75,000 that you believe you can develop and sell as a residential development. Your development costs are $60,000 to be incurred immediately. You expect to sell all the lots in years 3-5 at a net income of $70,000, $85,000, and $68,000 respectively. Your required rate of return is 12 percent. Do you purchase the tract of land?
Your friends and you decide to purchase a large tract of forest land in northern Minnesota...
Your friends and you decide to purchase a large tract of forest land in northern Minnesota with the intent of generating income from timber and leasing the hunting rights. Your estimated costs and returns are as follows: • $1400/acre purchase price of land, paid back in equal yearly installments over 15 years @ 7% annual interest. • $200/acre site preparation costs incurred immediately. • $250/acre tree planting costs incurred 1 year after purchase. • $100/acre forest management costs incurred 3,...
2. Irene and Frank Adam plan to purchase an 80 acre tract of land valued at...
2. Irene and Frank Adam plan to purchase an 80 acre tract of land valued at $2,200 per acre. The lender charges a $500 loan application fee and $250 for a real estate appraisal. A stock requirement of 5% of the loan amount (after addition of fees) is required. The fees and stock requirement can be added to the original loan amount. The original stock value will be returned upon retiring the loan. The contractual rate is 8%. The fixed...
Jane and John Boilermaker wish to purchase a 40 acre tract of land valued at $1,900...
Jane and John Boilermaker wish to purchase a 40 acre tract of land valued at $1,900 per acre. The lender charges a $500 loan application fee and $250 for a real estate appraisal. Fees totaling 1% of the loan amount are also required to complete the loan. The fees can be added to the original loan amount. The lender requires $24,000 initial equity for this loan. The contractual interest rate is 7%. The fixed annual payments are based on a...
2. Irene and Frank Adam plan to purchase an 80 acre tract of land valued at...
2. Irene and Frank Adam plan to purchase an 80 acre tract of land valued at $2,200 per acre. The lender charges a $500 loan application fee and $250 for a real estate appraisal. A stock requirement of 5% of the loan amount (after addition of fees) is required. The fees and stock requirement can be added to the original loan amount. The original stock value will be returned upon retiring the loan. The contractual rate is 8%. The fixed...
Sally enters into a contract with John to purchase John’s 2015 Volvo for $18,000. On the...
Sally enters into a contract with John to purchase John’s 2015 Volvo for $18,000. On the day that the contract is to be performed Sally tenders the $18,000 but John refuses to deliver the Volvo. Sally sues John for breach of contract. Sally locates a Volvo identical to John’s. Sally purchases the identical Volvo for the price of #20,000. In addition the automobile was located 150 miles from where Sally and John resided. Sally pays Bill, a classmate, $150 to...
An Omani car dealer enters into a contract with German manufacturing company for purchase of 25...
An Omani car dealer enters into a contract with German manufacturing company for purchase of 25 cars on 1st February 2019 payment to be made within one month from the date of delivery. The exchange rate in spot market on the date of transaction is OMR 0.43556 = 1 EUR. The total cost of 25 cars amounts to Euro 625000. The car was delivered on 1st June 2019. Assuming that the forward contract price of OMR is at a forward...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT