Fact Pattern 14-A2 (Questions A5-A6 apply)
Moore Properties,Inc.,offers in writing to sell to New Development Corporation (NDC)a certain half-acre of land for "$112,000." After New Development signs the offer in acceptance and returns it,Moore discovers that the price should have been stated as "$121,000."
-Refer to Fact Pattern 14-A2.Moore's misstatement of the price is
A)a bilateral mistake.
B)a fraudulent misrepresentation.
C)a unilateral mistake.
D)unconscionable.

Question

Quizplus · Accepted Answer

Moore's misstatement of the price is a unilateral mistake, meaning only one party was mistaken. In this case, it was Moore who made the mistake in offering the land at a lower price. Because NDC did not know about the mistake and accepted the offer in good faith, Moore cannot unilaterally change the price. However, this does not qualify as a bilateral mistake because only one party was mistaken, and it is not fraudulent misrepresentation because there was no intent to deceive. It is also not unconscionable because the price difference is not so significant as to shock the conscience.

Fact Pattern 14-A2 (Questions A5-A6 Apply)