Luis Vernet had a close personal friendship with Jorge Pacheco, one of the heroes of the Liberation War and the British invasions of the River Plate. Pacheco was owed money by the Government of Buenos Aires and entered into an agreement with Vernet, whereby Vernet would support Pacheco until the debt was repaid, whereupon Vernet would receive half of the money owed. Vernet learned of the wild cattle in the Falklands through his wife María, who was related to a former Spanish Governor of Puerto Soledad, and conceived of a plan to exploit the cattle in the islands. Together with Pacheco he approached the Government in Buenos Aires with a plan to establish a settlement to exploit the wild cattle. In 1823, the United Provinces of the River Plate granted by decree rights to Jorge Pacheco and Luis Vernet. Governor Martin Rodriguez offered Pacheco the usufruct of the wild cattle in the Falkland Islands as payment for his debt. At first Vernet rejected the idea, but after reviewing Pacheco's claim and finding them tenuous, he accepted the offer. On August 5, 1823, Vernet and Pacheco signed a contract under which Pacheco would negotiate the terms of the grant with the government and Vernet would manage the enterprise. Under the terms of the usufruct the partners could either travel to the islands themselves or appoint a 3rd party. Pacheco submitted his proposal and on August 28 the Government granted him by decree the requested rights.