Question
In 2010, Leslie Norman was 89 years old. He owned land which he agreed to lease to Phil Dance for five years with an option
In 2010, Leslie Norman was 89 years old. He owned land which he agreed to lease to Phil Dance for five years with an option to purchase the land when the lease expired. The purchase price for the land at the end of the five year lease term was set at $100,000, payable over 20 years at $5,000 per year. No interest was payable under the agreement. In fact, the value of the land in 2010 was $370 000. At that time, Phil was 30 years old and he personally drafted a written contract on the terms agreed to. He had Leslie come to his office to sign the contract at 10 p.m. when no one was around. Leslie did not obtain independent legal advice before entering into the contract. Within days after signing the contract, Leslie denied that he had rented or sold his land and told several people that he had actually bought land from Phil.
In 2011, Leslie was taken to a nursing home as he could no longer care for himself properly. Leslie passed away in 2015 just at the same time as the end of the lease term. the value of the land had risen to $1 000 000. Phil then sought to exercise his option to purchase the land pursuant to the contract. Leslie's estate refused to sell the land to Phil, claiming that the contract was unconscionable.
Do you agree with the estate? Please explain your answer?
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