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. In this case:
A) there is a mistake of law, which in some states is treated no differently than a mistake of fact. In such states, since this mistake relates to a basic assumption on which the parties made their contract and it has a material effect on their agreement, the contract is voidable.
B) since everyone should know the law, Stewart is liable to Will for any losses he may incur.
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

A mistake of law, which in some jurisdictions is treated similarly to a mistake of fact, can make a contract voidable if it is based on a fundamental misunderstanding that significantly affects the agreement. In this scenario, the rezoning of the land, unbeknownst to both parties, constitutes such a mistake, impacting the feasibility and legality of the intended construction project.

Stewart Entered into a Contract with Will to Have Will