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Rights to mineral deposit

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M

mdgraves

Guest
What is the name of your state? US/Canada

I am taking a first year law course as part of my MBA and I am required to analyze a case where a US citizen and a resident of BC begin negotiating the arrangments for investigating and staking a mineral claim in BC, Canada.

The facts of the case are as follows:

1. Brown (US party) had discovered evidence of deposits 30 years prior.)

2. Over a period of three months, Brown and Stevens negotiated the terms of their agreement through written correspondence.

3. Stevens sent a letter agreeing to finance Brown's investigation of the claim along with a 10% interest.

4. Brown wrote back indicating he would make arrangements to be available as soon as Stevens could arrange for transportation.

5. A month later, Stevens wrote Brown telling him that he had changed his mind because he spoke with a prospector who said it would be doubtful they would be successful.

6. Brown did not reply.

7. A year later, Brown went to investigate the claim and found that Stevens had already staked claims and sold them to a mining company.

My question is would Brown have legitimate grounds to sue for breach of contract? Could Stevens argue that the lack of reply from Brown meant he accepted the change in their contract?

I'd appreciate any thoughts or advice on this case.

Thank you,
Michelle
 



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