Question
Karla owns a beautiful home on an all-sports lake that she intends to sell for $1,900,000. According to Zillow, it should be worth $2,105,000. She
Karla owns a beautiful home on an all-sports lake that she intends to sell for $1,900,000. According to Zillow, it should be worth $2,105,000. She purchased it 15 years ago for $995,000. Excited to make a quick sale (and profit!), Karla lists it for sale by owner, complete with pictures. In her description, she types the listing price as the "Low, low price of $190000."
Within days, she receives a full-price offer from a local realtor, Jackie, for $190000, just as Karla had written in her advertisement. Happy, Karla signs the contract and starts making plans for her next chapter in life--retirement in Florida. At the closing, she is presented with a check for $190,000. Stunned, she refuses to sign the final closing papers. Jackie sues for breach of contract and asks the court to order specific performance. In her defense, Karla argues that the price was a mistake and should have been $1,900,000.
Use an I-R-A-C analysis to discuss the likely ruling of the court. Be sure to discuss the issues of Breach of Contract and Mistake.
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