Reference no: EM132119786

John and Lori Finstad granted ransom-sargent water Users an option to purchase their farmland and drill water wells. The option also permitted the Finstad’s to lease the property for up to ten years, provided they only use the land for pasture purposes. Four years later, ransom-sargent terminated the Finstad’s lease rights, because the Finstad’s had tilled up some of the land. in order to continue receiving government farm payments, the Finstad’s signed a new contract with ransom-sargent per- mitting the Finstad’s to lease the land for one year and to collect government payments for that year. By signing the contract, they also avoided a lawsuit with ransom-sargent. The contract included a release of all rights the Finstad’s had to lease the property under the original option agreement. The following year, ransom-sargent accepted bids to lease the land. after they were not awarded the lease, the Finstad’s sued ramson-sargent, alleging that their second contract was not supported by consideration and that their original option to lease should be upheld. were they correct?