Question

Billy Bond is a purchasing agent (employee) for the Woodward Oil Company. Billy has authority to purchase the oil needed by Woodward to satisfy the needs of its clients. While Billy is leaving an oil well, from which he has just purchased a large quantity of oil, his truck breaks down. He walks into a gas station for help. While there, he encounters Aaron Springer, who owns 400 acres with all mineral rights. Aaron, in need of cash, offers to sell Billy the property for $2,000 per acre. On inspection of the property, Billy thinks this property is a great place to drill wells. Billy contracts to purchase the property for Woodward Oil Company, signing the contract "Woodward Oil Company, Billy Bond, agent." The closing date is set for October 2nd. Billy takes the contract to the company. The lead partner is mad, because Woodward is not in the property business. Later, just before closing, both Aaron and the company learn that the value of the land is at least $20,000 per acre. What are the rights of Woodward and Aaron concerning the land contract? Explain your answer! Must be 115 words or more.

Answer 1

In the given scenario, Woodward and Aaron both needs to mutually cooperate with each other in order to make the land contract mutually beneficial for both the parties. Aaron must immediately inform Woodward that there was some lack of information with Aaron regarding the per acre value of the land and must ask their support to rectify the value of the land in the contract. Aaron must also apologize to Woodward for the inconvinience caused due to lack of complete information. After knowing the facts from Aaron, Woodward must also understand the matter well and cooperate with Aaron in revising the land contract, if they find the land to be profitable to them for drilling oil wells. However, Woodward may also cancel the contract if it finds the value of land to be too expensive for them. However, both Woodward and Aaron must mutually cooperate with each other in order to make the contract beneficcial for both of them.