Unilateral mistake of a contract
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Mark was shopping for a used car in February. He went to AutoMega World and test drove a used 2000 Tiger XL. While driving the car, he looked at the climate control center and noticed that the temperature lever was marked "cold" at one end in blue and "hot" in red at the other end. Mark assumed that the "cold marking meant that the car had air conditioning. Mark wanted to finally have an air-conditioned car. The salesperson did not mention anything about whether this car was air conditioned, but while test-driving the car, Mark commented, "It will be great to have an air-conditioned car." The salesperson heard Mark and knew that the car did not have air conditioning, but said nothing. Mark bought the car. When Mark was showing his new car off to friends, one of them showed him that the car did not have air conditioned. In this circumstance: a. Mark can void the contract on the basis of unilateral mistake because the sales person knew that Mark was mistaken b. Mark cannot void the contract on basis of his unilateral mistake c. Mark can void the contract on the basis of mutual mistake d. Mark can void the contract on the basis of fraud by concealment e. Mark can void the contract on the basis of fraud in the inducement
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Solution Summary
The solution examines the possibility of a void car contract over air conditioning. It is determined if the mistake of the buyer is an unilateral mistake of a contract or if it is fraud.
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The answer is B) Mark cannot void the contract on basis of his unilateral mistake. The fact ...
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