Which of the Following Is a Remedy in the Case
Which of the following is a remedy in the case of an erroneous expression of an agreement due to an error in drafting? A) Reformation B) Rescission C) Avoidance D) Tort of deceit
On May 6,Robbie entered into a signed contract with Ed,whereby Robbie was to sell Ed a painting having a fair market value of $350,000 for $130,000.Robbie believed the painting was worth only $130,000.Unknown to either party,the painting had been destroyed by fire on May 4.If Ed sues Robbie for breach of contract,Robbie's best defense is: A) risk of loss had passed to Ed. B) lack of adequate consideration. C) mutual mistake. D) unconscionability.
Which of the following is a ground for avoidance of contract based on a unilateral mistake? A) Both parties are mistaken about a fact. B) Nonmistaken party caused the mistake. C) The mistaken party had reason to know of the mistake. D) Person affected by the mistake does not bear the risk for it.
Paco Corp. ,a building contractor,offered to sell Roy several pieces of used construction equipment.Roy,engaged in the business of buying and selling equipment,accepted the offer.Paco's written offer had been prepared by a secretary who typed the total price as $10,900,rather than $109,000,which was the approximate fair market value of the equipment.Paco learned of the error in the offer and refused delivery of the equipment unless Roy agreed to pay $109,000.Roy has sued Paco for breach of contract.Which of the following scenarios is the likely outcome? A) Paco will not be liable because there has been a mutual mistake of fact. B) Paco will be able to rescind the contract because Roy should have known that the price was erroneous. C) Roy will prevail because Paco is a merchant. D) The contract is enforceable because Roy had accepted it.