Fact Pattern 15-B2 (Questions B3-B4 Apply)

question 23

Multiple Choice

Fact Pattern 15-B2 (Questions B3-B4 apply)
Organic Farms Company contracts to buy two tracts of land from Prime Bottomland,Inc.Both parties believe that the two tracts are adjacent,but in fact they are not.Prime Bottomland is still willing to sell the land,but under these circumstances the deal would adversely affect Organic Farms.
-Refer to Fact Pattern 15-B2.The parties' belief about the adjacency of the property is

• A)a bilateral mistake.
• B)a fraudulent misrepresentation.
• C)a unilateral mistake.
• D)unconscionable.

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Definitions:

Property, Plant, Equipment

Tangible assets that are used in the operations of a business, have a longer life, and are not intended for sale, including buildings, machinery, and vehicles.

Premium on Bonds Payable

The amount by which a bond's selling price exceeds its principal (face value), reflecting superior credit quality or lower market interest rates.

Common Stock Dividend

Payments made to shareholders from a company's earnings, reflecting a share of the profit allocated to each share of common stock.

Bonds Payable

Represents the amount owed to bondholders by the issuer, typically a long-term liability on the company’s balance sheet.