Q: My grandfather recently died and we found that he entered into option to buy agreements with no exp date. Enforceable?
The agreements were one for the farmland and one for the farmhouse back in 2012 and 2013. Both have given monetary consideration but no expiration date (grandfathers death triggered the option). Both options are for purchase prices far below market value. Also, the optionees on the land deal are now divorced but both are listed on the option to buy. We want to know if those contracts are enforceable in court of law.
A:
Without seeing the actual paperwork it is impossible to provide any real advice but
1) If there was 'consideration' given
2) if the agreement was in writing
3) if the other conditions have been met
and
4) if the other party (ies) are wanting to go through with the option
then it likely is valid.
The fact that the price set is below the current market value is not relevant. The POINT of an option is to set a price now so that the parties can rely the price won't change. An OPTION provide the buyer the right to say 'never mind' and let it go, but requires the SELLER to agree to the terms -- particularly the purchase price -- in the option.
Get the paperwork to an attorney to review as things like the marital status of the parties etc may be important to the option (but are not necessarily!) and the other aspects of the conditions may apply.
Brent T. Geers agrees with this answer
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