Reference no: EM132222354
Michael is a real estate developer. He is looking for a new tract of land to build a gated community called Sudden Valley for family homes. Michael finds a 100-acre tract of land and starts to build homes. Prior to development, Michael believed he had title to the property.
On the first day of development, September 20, 2003, one of the construction workers, Buster, loses a ring as he is hammering a nail into a wall. He tries to find the ring, but it is lost.
Finally, the last home is completed on February 17, 2006. The next day Michael sells his first home to a magician named Gob. Michael gives Gob a quit-claim deed for the home. The next day Gob looks into one of the cupboards and finds Buster's lost ring. Gob wants to sell the ring. He heads to a local coffee shop to find a buyer. Gob runs into an old friend Gene. They talk and Gene offers $200 for the ring. Gob replies, "Come on! This ring is worth $3,000 easy." Gene then offers $800 for the ring. Gob replies, "I guess we have a deal." Gene says, "We have a deal." Gene gives Gob $800.
Due to the bad economy in 2008, Buster loses his job as a construction worker. His longtime girlfriend, Lucille, won't marry him because of his lack of employment. Lucille says to Buster, "I will marry you on the condition you give me your 5,000 shares of Stand-Poor Incorporated." Buster says, "Yes, I agree."
Lucille has a change of heart and doesn't want to marry Buster. Buster sues Lucille and requests the court to force her to marry him. What can she argue to the court if she wants to win? Why?
Assume that unbeknownst to Michael, the 100-acre tract of land where Sudden Valley was built is actually owned by Tobias. Tobias bought the land in 1995. Tobias sues Gob for his home and land back. If Tobias wins, what is the most likely reason for that outcome?
Do Gene and Gob have a valid contract? Why or why not? Is there a way for either party to get out of the contract? Why or why not?