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The Churches counterclaimed the contract should be rescinded based on their mistaken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:
A. the active fraud of the Houstons.
B. a bilateral mistake of value.
C. the Churches unilateral mistake of value.
D. the Houstons exertion of undue influence.
Charlotte is declared mentally incompetent by a court and is unable to participate as a
partner in AMLAP Enterprises. Charlotte wants to leave the AMLAP partnership, but is
contractually obligated for three more years. Can Charlotte leave the AMLAP
A. Yes, she can do so without any liability to the partnership.
B. No, there is no right to leave.
C. Yes, she has a right to leave, but is liable for breach of contract.
D. No, there is no right to leave unless all the partners agree.