Dix Agrees to Sell Eli, for $1,500, a Remote Parcel

question 9

Multiple Choice

Dix agrees to sell Eli, for $1,500, a remote parcel of land. They 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 fraud.
• C) ​rescind the contract on the basis of mistake.
• D) ​rescind the contract on the basis of undue influence.

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Definitions:

Marginal Revenue Product

The extra revenue generated from employing one additional unit of a resource.

Marginal Cost

The additional cost incurred by producing one more unit of a product, which can vary depending on the level of production.

Pareto Efficient

A distribution of resources where improving the situation of one person cannot be achieved without detriment to another.

Net Benefit

The total positive effects or outcomes of a decision or action minus its total negative effects or costs.