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First Principles of Business Law |
| Circumstances that may invalidate a legal transaction |
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5. Mistake |
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5.5. Unilateral mistake |
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Read the facts and the question and then choose the best answer. A, a dealer in used cars, has two E-type Jaguar cars for sale, one much older and cheaper than the other. He tells his assistant to put one of these cars in the yard and leave the other in the workshop. Later that day B, a collector of older cars, comes into A's office and says: "I've been looking at that E-type in your yard. How much do you want for it?" A glances at the cars in the yard and mistakenly thinks the cheaper car is outside. He says: "You can have it for $5,000." B says: "OK, that's a deal. Let's sign the papers". Only after completing the paperwork and accompanying B to the yard does A discover he has sold the more expensive car for $3,000 less than it is worth. Would A be entitled to avoid the sale because of this mistake? |
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