1)

Sara is single, age 25 and owned a paid in full 2015 blue Chevy Truck that she believed had a fairly high market value. It took Sara about 4 years to pay off the truck.

Benjamin, Saras close boyfriend, had done his research on Saras truck and knew that the truck was actually worth about $20,000 or more. Benjamin had been in the truck industry and was well aware of the different values of trucks. Sara was somewhat unknowledgeable about the truck industry and the true value of her truck.

After a romantic Valentines Day dinner at the local burger shop, Benjamin offered to buy Saras Blue Chevy Truck for $5000.00. Sara felt uneasy about the price as she thought $5000.00 was too low, but she loved Benjamin and wanted to make him happy.

Sara had done a little research and she knew that $5000.00 was somewhat in the low ball-park range for selling the truck.

After Sara and Benjamin went on a walk through the park holding hands, Benjamin brought up the truck again and offered to buy the Blue Chevy Truck for $5000.00. Sara wrapped her arms around Benjamin and gave him a big hug.

Sara said, Okay, I will sell my truck to you for $5000.00. Sara and Benjamin signed a written contract that Sara would sell the truck to Benjamin for $5000.00. They both signed a written agreement on October 5, 2020.

The next day, October 6, 2020, Benjamin brought Sara a check for $5000.00 (with a little heart on the bottom of the check) and Sara gave Benjamin the truck and signed over title of the truck to Benjamin.

Benjamin drove away with the truck and said, See you tomorrow. I love ya!

That same evening, October 6, 2020, Sara went online and started to research the blue book value of her Truck she sold to Benjamin. Sara realized without a doubt that the truck was worth much more than $5000.00.

Sara called Benjamin that same evening, October 6, 2020, and said she had done some more research on the value of the truck and wanted to undo the contract. It wasnt fair. You owe me much more money than $5000.00.

Sara felt that Benjamin had used undue influence on Sara to buy her truck at a low price because Benjamin knew that Sara wanted to stay his girlfriend.

Sara asked Benjamin to return the truck and she would give Benjamin back the $5000.00 OR Benjamin needed to pay Sara more money for the truck.

Benjamin said NO! I bought the truck fair and square!

Sara immediately dumped Benjamin and argued that Benjamin used undue influence upon Sara to purchase the truck for $5000.00.

Sara filed a lawsuit against Benjamin in the local District Court, asking for the Court to void the contract.

WHICH IS ENTIRELY TRUE:

1. The Judge found that the contract was invalid because Benjamin had been dishonest with Sara about the actual value of the vehicle and used undue influence over Sara to buy the truck for $5000.00 because of their romantic relationship.

2. The Judge found that the contract was invalid because BOTH parties, Benjamin and Sara, were mistaken about the actual value of the truck (the Judge found the truck was worth $30,000), and it was a mutual bilateral mistake of fact, unwinding the contract, in addition to Benjamins use of undue influence over Sara.

3. The Judge found the contract VALID. The Judge enforced the contract and Benjamin was allowed to keep the truck for the $5000.00 he had paid to Sara. Sara would keep the $5000.00 paid.

4. None of the above