Stewart Entered into a Contract with Will to Have Will

question 77

Multiple Choice

Stewart entered into a contract with Will to have Will build a 10-unit apartment complex on Elm Street in Randolph County. Unknown to both parties, this land had recently been rezoned and only single-unit dwellings can be constructed. In this case:

• A) there is a mistake of law, which in some states is treated no differently than a mistake of fact. In such states, since this mistake relates to a basic assumption on which the parties made their contract and it has a material effect on their agreement, the contract is voidable.
• B) since everyone should know the law, Stewart is liable to Will for any losses he may incur.
• C) Stewart is obligated to buy land elsewhere and have the complex constructed on property zoned for apartments.
• D) Will is liable to Stewart since Will is a contractor.

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Definitions:

Signal Detection

A method or theory related to identifying and processing stimuli under conditions of uncertainty.

Perceptual Assimilation

The process by which new information is interpreted and integrated into an existing cognitive framework or understanding.

Signal-detection Theory

A means to measure the ability to differentiate between information-bearing patterns and random patterns that distract from the information.

Fechner's Law

A principle describing the relationship between the intensity of a stimulus and the magnitude of the sensory experience, stating that the intensity must increase geometrically to produce a linear increase in perception.