Dixon agrees to sell to Elmore, 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

Quizplus · Accepted Answer

The contract would not be rescinded because both parties were mutually mistaken about the value of the land, not its identity or existence, and such a mistake typically does not warrant rescission.

Dixon Agrees to Sell to Elmore, for $1,500, a Remote