27d (edited) • Contracts
Contract Hypo I am working on:
Joe had a wealthy brother, Steve, who owned an aging, unoccupied house situated on a large, tree-covered lot. Joe asked Steve if he would sell the property and, if so, at what price. Steve replied that he would not sell, but would let Joe have possession of the property free of charge if Joe would maintain it. A few days later, Joe wrote Steve and asked permission to go on and take possession of the property for the purpose of making the substantial repairs and renovations necessary to make the house habitable and to take up residence there. Steve wrote back: "Of course you may go on the property we discussed. I promise that if you make the house habitable, it is yours for at least the next ten years."
Over the next several months, Joe spent more than 300 hours of his free evenings and weekends working on the house, expended $6,000 for materials, and paid out another $5,000 for plumber and electrician help. Joe often slept overnight at the house on occasions when he worked late. Just as the house became habitable and ready for Joe to take up permanent residence on the property, Steve told him that Buyer had offered $200,000 for the house for immediate possession, that Steve had accepted Buyer's offer, and that Steve would compensate Joe for his out-of-pocket expenses ($11,000) but not for his time and labor. The rental value of the property, as restored by Joe, is $800 per month, and Joe's time is worth $15 an hour.
What are Joe's rights and remedies? Discuss.
I will post an answer this weekend for critique and analysis
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Contract Hypo I am working on:
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