Open Range Agrees to Sell Pinewood Ranch a Remote Parcel

question 13

Multiple Choice

Open Range agrees to sell Pinewood Ranch a remote parcel of land for $15,000. Both parties believe the land to be worthless, but beneath it is shale rock containing oil. A court would

• A)not rescind the contract.
• B)rescind the contract on the basis of a mistake of quality.
• C)rescind the contract on the basis of a mistake of value.
• D)rescind the contract on the basis of a mistake of opinion.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to buy at a given price in a given time period.

Substitute Resources

Alternative resources that can be used in place of another for the production of goods and services.

Resource

A source or supply from which benefit is produced, typically natural, human, or capital resources used to produce goods and services.

Minimum Wage

The lowest legally allowable pay per hour for workers, set by government policy.