Maurice Offered to Sell His Used Computer to Mike for $300,and

question 22

Multiple Choice

Maurice offered to sell his used computer to Mike for $300,and Mike accepted.Both Maurice and Mike believed that the computer was one year old.When the receipt was found,however,it was discovered that the computer was actually 18 months old.Mike wants out of the agreement based on mutual mistake.Which of the following is Maurice's best position in an attempt to enforce the contract?

• A)That the mistake did not have a material effect on the agreement.
• B)That the mistake should be allocated equally between the parties.
• C)That a mutual mistake was involved.
• D)That a unilateral mistake was involved.
• E)None of these,because as a matter of law,Mike can legally avoid the contract with this type of mistake.

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Definitions:

Fair Market Value

The cost at which a property would be exchanged in a competitive bidding environment.

Incorporation Services

Services offered by certain companies or legal entities that assist individuals or other entities in forming a corporation.

Fixtures

Items of property that are attached to a building or land in a way that makes them a legally part of that property, such as lighting systems or cabinetry.

Par Common Stock

The nominal or face value assigned to a share of common stock in the corporate charter, which may differ from the market value.