Open Range agrees to sell Pinewood Ranch a remote parcel of land for $15,000. Both parties believe the land to be worthless, but beneath it is shale rock containing oil. A court would
A)not rescind the contract.
B)rescind the contract on the basis of a mistake of quality.
C)rescind the contract on the basis of a mistake of value.
D)rescind the contract on the basis of a mistake of opinion.

Question

Quizplus · Accepted Answer

The contract would not be rescinded because the mistake was mutual and pertained to the value of the land, not the nature of the agreement itself. Both parties were mistaken about the value of the land due to the undiscovered oil, but this does not invalidate the contract. Mistakes of value, where both parties are unaware of the true value of the subject of the contract, typically do not provide grounds for rescission.

Open Range Agrees to Sell Pinewood Ranch a Remote Parcel