Katie and Linda Enter into a Contract for Katie to Buy

question 15

Multiple Choice

Katie and Linda enter into a contract for Katie to buy Linda's house in which there are several terms that are subject to more than one reasonable interpretation.If Katie and Linda attach materially different meanings to a term

• A)only Katie will be able to void the contract.
• B)only Linda will be able to void the contract.
• C)neither Katie nor Linda will be able to void the contract.
• D)either Katie or Linda will be able to void the contract.

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Definitions:

Good Faith

A principle that emphasizes honesty, fairness, and integrity in the fulfillment of contractual obligations or in negotiations.

Reasonable Commercial Standards

A legal concept referring to the standard practices and methods used by reasonably prudent and competent parties in a particular industry.

Honesty

The quality of being truthful and free from deceit or fraud.

Holder In Due Course

A legal term for a party that has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defects in title and prior claims.