Harvey and Myra Church were interested in buying land from Sam and Barb Houston.When the Churches asked about the appraised value of the property,the Houstons said that the appraisals ranged from $185,000 to $198,000.Without looking at any appraisals,the Churches agreed to buy the property for $185,000.After the contract was signed,the Houstons provided an appraisal listing the value as $155,000.When the Churches refused to go through with the deal,the Houstons sued to recover the difference between $185,000 and the lower price for which the house was later sold.The Churches counterclaimed the contract should be rescinded based on their mistaken assumption about the value of the house.The Churches' best argument for rescission would be based on:

Question

Quizplus · Accepted Answer

BThe Churches' best argument for rescission could be based on the active fraud of the Houstons, as they misrepresented the appraised value of the property, and a bilateral mistake of value, since both parties were mistaken about the actual value of the property, which was a fundamental aspect of their agreement.

Harvey and Myra Church Were Interested in Buying Land from Sam