Buyer and Seller Enter into an Agreement to Sell a Mobile

question 16

Multiple Choice

Buyer and seller enter into an agreement to sell a mobile home and lot.Before the deed can be signed,the mobile home is destroyed by a tornado.Which of the following doctrines would most likely allow the buyer to avoid his contractual obligations?

• A) impossibility
• B) commercial impracticality
• C) frustration of purpose
• D) failure of a condition precedent
• E) novation

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Definitions:

Mutual Mistake

A legal concept where both parties involved in a contract have a misunderstanding about an essential fact of the agreement, potentially making the contract voidable.

Fair Market Value

The price at which an asset would exchange hands between a willing buyer and seller, each having reasonable knowledge of the relevant facts, and neither being under compulsion to transact.

Breach of Contract

Occurs when one party fails to fulfill their obligations under a contract, allowing the other party to seek legal remedies.

Unilateral Mistake

A situation in contract law where only one party is mistaken about a basic assumption on which a contract is made, which can impact the enforceability of the contract.