Winona Enters into a Contract with Peyton to Buy Peyton's

question 12

Multiple Choice

Winona enters into a contract with Peyton to buy Peyton's land based on Peyton's assertion that the land is legally open to development. After the sale,Winona learns what Peyton knew previously-only a small section of the land can be built on. A local law prohibits construction on the rest of the property. Winona can

• A)not avoid the contract because persons are assumed to know the law.
• B)avoid the contract due to a mutual mistake.
• C)avoid the contract due to a mistake in value.
• D)avoid the contract due to fraud.

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Definitions:

Marginal Product

The additional output produced by using one more unit of a input, holding all other inputs constant, used in the analysis of production efficiency.

Raking Leaves

The activity of gathering fallen leaves into a pile using a rake, often performed as part of garden maintenance or cleanup.

Derived Demand

The demand for a commodity, service, etc., that is a consequence of the demand for something else.

Marginal Product

The additional output gained by employing one more unit of a specific factor of production, ceteris paribus.