Glenn Bowen approached Raymond and Dorothy Barrows in early 1989 regarding the sale of a 17-acre tract of land that the Barrows owned as tenants by the entirety. After a real estate "sales associate" located by Mr. Bowen determined that the value of the land was $50,000, Mrs. Barrows agreed to sell the property for $45,000. The contract, which was drafted by Mr. Bowen''s attorney, provided that the Barrows would transfer title to the land in exchange for $100 cash and a promise to pay $44,900 at no specified time and with no interest accruing. Later, at the closing in November 1989, an addendum was added which provided that the "loan will be payable in fall (sic) in any event on (4) years from this date of settlement." After the closing, Mr. Bowen listed the property for sale asking $115,000, despite an earlier statement indicating that he sought land upon which to build a home. After Mr. Barrows'' death in 1990, Mrs. Barrows and her son, Raymond Barrows Jr., brought suit seeking recision of the contract based on Mr. Barrows'' incompetence. From 1985 until his death, Mr. Barrows had grown increasingly senile and confused due to arteriosclerotic cardiovascular disease.
The court finds that the terms of the contract, among other things, are the "most powerful evidence" of Mr. Barrows'' lack of contractual capacity. The court notes that when Mr. Barrows was younger, he was a shrewd business person who charged his own children interest on loans. The court also relies on the testimony of Mr. Barrows'' doctor that from August 1986 until his death in 1990, Mr. Barrows was "mentally incompetent to make decisions that would be in his own best interest." Noting that Mr. and Mrs. Barrows held the property as tenants by the entirety, the court holds that the deed is voidable because Mr. Barrows could not effectively sign it.
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