In Which Scenario Will the Court Likely Find the Contract

question 81

Multiple Choice

In which scenario will the court likely find the contract void on the grounds of mistake?

• A) Annette bought a suit thinking she would be invited back for a second interview. She wasn't, and now wants to return the suit on the basis of mistake.
• B) Ms. Hunt bought some property erroneously thinking that the province was planning to put a highway nearby, even though the seller had never made any such suggestion. She wants out of the contract.
• C) The parties signed a document that stated the consideration as $1100 instead of the $900 that the buyer and seller had contracted for, but the buyer cannot prove the terms of the original contract.
• D) Mr. Armstrong accepted an offer by Sidhu, who was selling a "computer program," but learned that they had different understandings of what program was meant. The court cannot say that one interpretation is better than the other.
• E) Mary contracted to buy "the Acura car" from a collector of cars. He was selling his 2011 model but she thought she was buying the 2012 model. The court, looking at all the evidence, found that his interpretation was the more reasonable.

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Definitions:

Real Interest Rate

The interest rate that has been adjusted to remove the effects of inflation, reflecting the real cost of borrowing.

Consumption

The action of using up a resource or goods, often referring to the rate at which consumers purchase and use products and services.

Real Rate of Interest

The rate of interest an investor expects to receive after adjusting for inflation, indicating the real cost of borrowing.

Nominal Rate

The stated interest rate on a loan or financial instrument, not adjusted for inflation.