Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson

Exercise 19

Glen and Marlene Spitznogle purchased a parcel of land from Kevin and Krista Durbin. The land contract described the 138-acre property and excepted a small lot and house trailer from the purchase. At the time the parties executed the contract, the Durbins' interest in the land was subject to a reservation of oil and gas rights for the lifetime of each of the prior owners, the Scherichs. The Durbins owned a vested remainder interest in the oil and gas rights, which meant the oil and gas rights would be theirs after the Scherichs died. However, in the land sale contract to the Spitznogles, the Durbins did not except their remainder interest in the oil and gas rights. After the land contract was fully consummated, the Durbins attempted to except their interest to gas and oil rights in the land. They claimed they did not initially except their rights, because they had been confused about the nature of their interest to the oil and gas rights in the land. Could they set the contract aside?