Business and Management
Submitted By yunt
The case is about a businessman has rented 65.895 acres from Meilan residents since 1998. In 1998, the businessman and all residents signed the contract freely which the businessman could use the 65.895 acres area land for agriculture producing 50 years, and every five years the rent fees would increase 10% because of the market price would change by economy developing. This contract has continued 17 years; two sides have performed the contract obligations perfectly and did not have any argument. However, recently Hainan’s economy develops fast, and land’s price is rising sharply. Therefore, many farmers want to sell or rent their lands to others and earn more. Last month, two sides people negotiate adjusting the price but it did not work out. Thus, all residents chose a person to sue the businessman. All residents want the courtroom to support them then they could raise the rent price legally; the businessman wants the courtroom to keep the original contract and ignore the residents’ greedy behaviors.
This is a normal business case, and it is not complicated. The beginning year of contract, the businessman paid 40000 Yuan per year (6432 dollars) to all residents; then every five years increases 10 %, so now the rent price is 58564 Yuan per year (9415.4 dollars). All residents thought this price is unfair to them because of market price increasing more than the contract’s price. They thought the contract is unfair and they want the rent price increase more 50 % which is 87846 Yuan. However, in 1998, the businessman rented 65.895 acres area land by using 40000 Yuan is more than the market price and before 2013, the businessman paid the rent price to residents, which was higher than market price. Only last two year, the government policy has changed, and investors have more interested in Hainan so the land price was raised by speculators. In addition, the…...