QUESTION NINE:

Joe Owner is the owner of a 50 acre tract of real estate in St. Louis County that is presently unimproved.He writes a letter to you offering to sell that property to you for $8,000 per acre.When you receive the letter, you call him to discuss the real estate and his offer to you.In those conversations, you ask Joe Owner whether he would accept $7,000 per acre and he tells you that he would not.He says that the reason he would not is because he paid $7,000 per acre for the property when he purchased it.Joe Owner is also aware, at the time you are having this conversation with him, that the property next door has been purchased by Billy Farmer who intends to open up a hog farm on that property.He does not, however, tell you anything about that.The telephone conversation concludes, and you put a letter in the mail indicating that you accept the offer of Joe Owner and agree to pay $8,000 per acre.After you put your letter of acceptance in the mail, but before it is received, Joe Owner calls you and tells you that he is withdrawing his offer.

A.Does a binding contract exist for the sale and purchase of that real estate?If so, when did it become binding?

B.The purchase does close, and you have paid Joe Owner the full purchase price.After doing so, you find out that Joe Owner did not pay $7,000 per acre, but instead paid only $4,000 per acre, and you also find out about the hog farm being built next door.Do you have any recourse against Joe Owner?If so, identify under what theories you would make a claim.