Question

Imagine that Bowen had the property appraised by a professional appraiser with a good reputation and no conflict of interest. Suppose that the appraiser valued the land at $250,000 and Bowen paid Barrows that amount in cash when they signed the contract. What result?

Answer 1

Answer: This presents a different situation but the contract is still voidable.

Situation: Raymond Barrows owned a 17-acre parcel of undeveloped land in Seaford, Delaware. For most of his life, Mr. Barrows had been an astute and successful businessman, but by the time he was 85 years old, he had been diagnosed as "very senile and confused 90 percent of the time." Glenn Bowen offered to buy the land. Barrows had no idea of its value, so Bowen had it appraised by a friend, who said it was worth $50,000. Bowen drew up a contract, which Barrows signed. In the contract, Barrows agreed to sell the land for $45,000, of which Bowen would pay $100 at the time of closing; the remaining $44,900 was due whenever Bowen developed the land and sold it. There was no time limit on Bowen's right to develop the land nor any interest due on the second payment.

Explanation: The situation shows that the contract is voidable due to the mental state of Raymond Barrows and the conflict of interest of the valuer.

If Bowen had the property appraised by a professional with a good reputation and no conflict of interest, then paid the amount in full, this presents a different situation. However, the contract is still voidable because Raymond Barrows was mentally incompetent at the time of making the contract. Mental Incompetence includes senility or any condition which impairs a person's understanding of the consequences of entering the contract.