Fact Pattern 12-2
Organic Farms Company contracts to buy two tracts of land from Prime Bottomland, Inc. Both parties believe that the two tracts are adjacent, but in fact they are not. Prime Bottomland is still willing to sell the land, but under these circumstances the deal would adversely affect Organic Farms.
-Refer to Fact Pattern 12-2. The parties' belief about the adjacency of the property is
A) a bilateral mistake.
B) a fraudulent misrepresentation.
C) a unilateral mistake.
D) unconscionable.

Question

Fact Pattern 12-2 
Organic Farms Company contracts to buy two tracts of land from Prime Bottomland, Inc. Both parties believe that the two tracts are adjacent, but in fact they are not. Prime Bottomland is still willing to sell the land, but under these circumstances the deal would adversely affect Organic Farms.
-Refer to Fact Pattern 12-2. The parties' belief about the adjacency of the property is
A) a bilateral mistake.
B) a fraudulent misrepresentation.
C) a unilateral mistake.
D) unconscionable.

Quizplus · Accepted Answer

The parties' belief about the adjacency of the property is a bilateral mistake, which occurs when both parties are mistaken about a material fact necessary to the contract. In this case, both parties believed that the tracts were adjacent, but this was not the case. As a result, the contract may be voidable by either party.