Reference no: EM132264822
ABC sold mobile homes and developed mobile home parks. ABC engaged Alan, a licensed real estate broker, to acquire land for development as a mobile home park, at a weekly salary of $500.00. Alan told ABC that certain land known as Parkland was available for purchase. ABC asked Alan to purchase the land as a “straw man,” and then to convey the land to ABC. Alan told ABC that the land would cost $50,000, and ABC gave Alan that amount.
Unknown to ABC, Alan had an interest in Parkland. Before he had been employed by ABC, Alan had paid $1,000 for an option to buy Parkland for $25,000. When ABC gave Alan the $50,000 he asked for, Alan exercised his option to buy Parkland. Alan then used $25,000 of the $50,000 to complete the purchase, and kept the remaining $25,000 for himself.
Required: Answer the following, setting forth reasons for any conclusions stated.
1. Discuss all relevant LEGAL issues raised by the facts above.
2. Discuss the legal arguments likely to be raised by both parties.
3. Decide on the matter.