Stewart entered into a contract with Will to have Will build a 10-unit apartment complex on Elm Street in Randolph County.Unknown to both parties,this land had recently been rezoned and only single-unit dwellings can be constructed.
A) This is a mistake of law.
B) This is a mutual mistake of fact.
C) Stewart is obligated to buy land elsewhere and have the complex constructed on property zoned for apartments.
D) Will is liable to Stewart since Will is a contractor.

Question

Quizplus · Accepted Answer

This is a mistake of law because both parties were unaware of the recent rezoning of the land. A mistake of law occurs when a party's misunderstanding or lack of knowledge about the law leads to an erroneous agreement or assumption. As a result, the contract may be invalidated or modified to reflect the correct legal situation. Will, as a contractor, is not necessarily liable for the mistake of law.

Stewart Entered into a Contract with Will to Have Will