Dix agrees to sell Eli, for $1,500, a remote parcel of land. Soon after, the land becomes much more valuable due to the construction of a new highway nearby. A court would
A) not rescind the contract .
B) rescind the contract on the basis of fraud.
C) rescind the contract on the basis of mistake.
D) rescind the contract on the basis of undue influence.

Question

Quizplus · Accepted Answer

The court would not rescind the contract because the increase in land value due to external factors like the construction of a highway does not constitute grounds for rescission based on fraud, mistake, or undue influence. The contract was agreed upon with the knowledge available at the time, and changes in value due to market conditions do not affect the validity of the contract.

Dix Agrees to Sell Eli, for $1,500, a Remote Parcel