Laporte v. Blum

Facts

Lawrence and Ruth Burgess (the grandparents) owned land on which they operated a sugarhouse. As the grandparents aged, Plaintiffs, their grandsons, began running the sugarhouse. Eventually, the grandparents deeded the land to Defendants. Despite Defendants’ protests, the grandparents gave Plaintiffs an option to buy the land for $400,000. Plaintiffs also had a lease allowing them to continue sugaring the land prior to execution of the option. Defendants claimed that the fair-market value of the land was more than $400,000. The option included a standard recitation that the option was given for $10 and other good and valuable consideration. There was no evidence that the $10 was ever exchanged. The lawyer who drafted the option testified that in his entire career of closings, he never saw anyone exchange the money recited as consideration. The grandfather’s will stated that it was his intent to provide Plaintiffs the benefits of the option and the lease. It was the grandparents’ desire that Plaintiffs continue to run the sugaring operation after the grandparents’ deaths. The grandparents died several years later, and Plaintiffs continued to run the sugaring operation. Plaintiff William testified that he and his brother would not have continued working on the land without the option and the lease. Defendants then sent Plaintiffs a letter withdrawing their option. Defendants argued that because the $10 recited in the option was never paid, the option was not enforceable because it was not supported by consideration. Plaintiffs then brought suit.