Stewart Entered into a Contract with Will to Have Will

question 51

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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