Question 20

Thomas A. Hadley believes he can make a fortune by opening a taco restaurant. Mr. Hadley’s restaurant will allow customers to build their own tacos from a fully loaded taco bar. Mr. Hadley plans to name his restaurant T.A. Taco. Mr. Hadley locates the perfect piece of land for his restaurant and wants to buy it. The land is across the street from the college stadium and just down the road from the Balcrank O-funnel factory. Mr. Hadley contacts the owner, Charles Bailey, and tells him that he would like to purchase the land. Mr. Bailey states that he will sell the land for $375,000. Mr. Hadley and Mr. Bailey meet at the Main Street Tavern to discuss the sale. Mr. Bailey shows Mr. Hadley a 14 page document and says, “Check it out, sign it, and let’s make this happen.” Mr. Hadley doesn’t know much about the sale of real estate or contract law so he asks Mr. Bailey for a few days to think it over.

Which of the following statements regarding this hypothetical scenario is most correct?

As long as the price and land description are accurate, Mr. Hadley can safely sign the document because the courts will make sure everything works out okay.

Mr. Hadley should consult an attorney because this transaction involves ‘Real Property,’ which has very formal rules.

There is alread an enforcable contract because Mr. Hadley said he would like to buy the land and Mr. Bailey stated he would sell it.

A land purchase contract signed at a tavern is not valid.