1. In a letter dated July 1, Bob offers to sell a boat to Dave for $4,000.00,

with delivery to be made on August 1. By return mail postmarked

July 3, Dave accepts Bobs offer. On July 6, Bob discovers that the boat is worth between $7,500.00 and $8,000.00. Bob immediately sends a fax to Dave informing him that he is canceling the contract. Which of the following is correct?

A)Because Bob was mistaken about the value of the boat, he has a right to cancel the contract.

B)Immediately upon receiving the fax, Dave can sue Bob for damages resulting from his breach of contract, even though the boat is not to be delivered until November 1.

C)Dave and Bob have mutual rescission