Al owns a farm that he believes is worth $150,000. Betty knows that there is oil under the farm and offers Al $160,000 for it. Al accepts and sells the farm to Betty. Al later realizes that the land was worth more than $160,000. Al can have the contract avoided based upon fraud.

Question

Quizplus · Accepted Answer

Al cannot avoid the contract based on fraud because there was no misrepresentation or deceit by Betty. Al's lack of knowledge about the oil does not constitute fraud on Betty's part.

Al Owns a Farm That He Believes Is Worth $150,000