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A written contract should with made with Thompson in which there should be specifications requiring him to do a certain kind & amount of work in a manner specified.  He should do this work as cheap as any responsible mechanic would agree to do it, whether $500 or less but the repairs ought not to cost over this sum.
The premises should be appraised before the work in commenced. If they are worth $130.  Lieut Thompson should give a lease requiring rent only on that amount at about 20 per cent on its actual worth.  He should also give a title bond for a deed at that price that is, the appraisal, fixing the terms of payment at $25, per year at 6 percent from the time the lease expires