A purchase agreement for a ranch property near Great Falls, Montana includes a clause stating that the seller's water rights under the prior appropriation doctrine will transfer with the property. The seller later claims the water rights were not intended to be included. Under Montana law, which statement is most accurate regarding this situation?
Correct Answer
D) The written purchase agreement clause controls, and the water rights must transfer as specified in the contract
Under Montana's Water Use Act (MCA Title 85, Chapter 2), water rights are appurtenant to land but can be separately conveyed. When a purchase agreement explicitly includes the transfer of water rights, the written contract controls. The seller is bound by the express terms of the signed purchase agreement, and the water rights must transfer as specified. The parol evidence rule prevents the seller from introducing oral claims to contradict the written contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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