Fact Pattern 10-2
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 10-2.The effect of Moore's misstatement of the price will most likely fall on
A)Moore and NDC,who must split the difference.
B)Moore only.
C)NDC only.
D)neither Moore nor NDC.

Question

Fact Pattern 10-2 
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 10-2.The effect of Moore's misstatement of the price will most likely fall on
A)Moore and NDC,who must split the difference.
B)Moore only.
C)NDC only.
D)neither Moore nor NDC.

Quizplus · Accepted Answer

Moore made the mistake in the offer, and since NDC accepted the offer as stated, Moore is bound by the original terms unless there is a legal basis to void the contract, such as a mutual mistake or fraud.