Business Law Today 8th Edition by Roger LeRoy Miller,Gaylord Jentz

Exercise 7

Agreement In 2000, David and Sandra Harless leased 2.3 acres of real property at 2801 River Road S.E. in Winnabow, North Carolina, to their son-in-law and daughter, Tony and Jeanie Connor. The Connors planned to operate a "general store/variety store" on the premises. They agreed to lease the property for sixty months with an option to renew for an additional sixty months. The lease included an option to buy the property for "fair market value at the time of such purchase (based on at least two appraisals)." In March 2003, Tony told David that the Connors wanted to buy the property. In May, Tony gave David an appraisal that estimated the property's value at $140,000. In July, the Connors presented a second appraisal that put the value at $160,000. The Connors offered $1 50,000. The Harlesses replied that "under no circumstances would they ever agree to sell their old store building and approximately 2.5 acres to their daughter... and their son-in-law." The Connors filed a suit in a North Carolina state court against the Harlesses, alleging breach of contract. Did these parties have a contract to sell the property? If so, what were its terms? If not, why not? [Connor v. Harless, 176 N.C.App. 402, 626 S.E.2d 755 (2006)]