Cathy (seller) and Mark (buyer) entered into a contract for the sale of a vacant lot in a subdivision. Cathy knew that the subdivision's restrictive covenants would not allow for larger than a two-car garage (and the homeowners' association vigorously enforces the covenants), but most of the homes in area had one-car garages. Cathy was unaware that Mark intended to build a home on the lot with a four-car garage.

Required:

What law applies to this sales transaction? Does Mark have a defense to performing the contract (buying the lot)? Why or why not? Explain. Would your answer change (and if so how and why) if Mark showed Cathy the plans for his home prior to entering the contract to purchase the lot and Cathy said nothing?