Ashton Acres Case Study

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The facts of this case are presented very clearly. Ashton Kutcher, owner of Ashton Acres, and Byrd Busch, owner of Bud Liteacres, have adjoining 100 acre farms. Separating the two was a barbwire fence. In addition, a large swamp encompassed part of both acreages (10 acres of Ashton Acres and 50 acres of Bud Liteacres). The two owners met over coffee where Busch orally proposed a trade of 25 acres for the draining of the swamp and a payment of $50,000 ($5,000 up front and $45,000 upon completion). The two owners shook hands on the deal and proceed to mark the 25 acres Ashton would receive upon completion. Ashton then paid Busch $5,000 as a down payment and began working on the swamp. Over a 30 day period, Ashton successfully completes the work using his own materials and labor and prepares a $45,000 payment for Busch. However, when Ashton arrives to present the check to Busch, Busch is not home. Instead he left a note saying the deal was off, as there was no contract between the two, and the barbwire fence needed to be returned to its original position between the farms. Unfortunately for Ashton, Busch is correct. There is no enforceable contract between the two landowners. The oral agreement is not enforceable because it involves the transfer of land and the sale of goods between the two is greater …show more content…

Because the work Ashton completed, benefitted 50 acres of Bud Liteacres and only 10 of Ashton Acres, the costs divided by the two should reflect that split. A total of 60 acres were benefitted and Busch owned 50 of those 60 acres. This means about 80% of the work done was advantageous for Busch’s property. Only about 20% benefitted Ashton Acres. Thus, the costs should be split in a similar manner with Busch paying 80% and Ashton absorbing 20% (it doesn’t make sense for Ashton to pay

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