Marty, who owns 500 acres of land in east Texas, has just discovered oil under his property.
Question:
Marty, who owns 500 acres of land in east Texas, has just discovered oil under his property. He calls OilBeMine, who wants to buy all of the oil from Marty's property. Marty is thrilled about the money he will make from selling the oil and he signs a contract allowing OilBeMine to set up a drilling station on his property. Thinking he can get more money off his land, Marty cuts down all of his trees with a chainsaw and then sells them to PaperCo to be made into paper. Meanwhile, Marty's neighbor offers to buy Marty's wheat crop after it is harvested in the Fall, and Marty agrees.
A. Is Marty's contract with OilBeMine likely covered by the UCC? Please be sure that your answer states the applicable rule and provide an analysis of the facts to the rule.
B. Is Marty's contract for PaperCo to purchase his trees covered by the UCC? Please be sure that your answer states the applicable rule and provide an analysis of the facts to the rule.
C. Is Marty's contract for Winslow to purchase his wheat crop covered by the UCC? Please be sure that your answer states the applicable rule and provide an analysis of the facts to the rule.
Concepts in Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher