Dix agrees to sell Eli, for $1,500, a remote parcel of land. They 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 fraud.
C) rescind the contract on the basis of mistake.
D) rescind the contract on the basis of undue influence.

Question

Dix agrees to sell Eli, for $1,500, a remote parcel of land. They 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 fraud.
C) ​rescind the contract on the basis of mistake.
D) ​rescind the contract on the basis of undue influence.

Quizplus · Accepted Answer

The court would not rescind the contract because both parties were unaware of the land's true value, and there was no fraud, mistake, or undue influence involved. The contract was made in good faith based on mutual ignorance of the land's potential value.

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