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:

Void

Refers to a contract or legal agreement that lacks validity and is therefore unenforceable by law.

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed by the parties involved to be enforceable.

Unenforceable

A term used to describe a contract or clause that cannot be legally enforced or compelled in a court of law.

Valid

Having legal force, or being legally binding and enforceable.