Katniss is considering buying some land from Peeta to build a shopping mall. She asks Peeta whether the land is zoned for commercial use. Peeta says he is not sure, but he will check. Peeta goes back to his office and calls the City by$-$law officer responsible for the property. The City by$-$law officer assures him that the land is zoned commercial. Peeta passes this information on to Katniss. Katniss buys the land and spends over $$100,000$ on architect$$s plans and hiring general contractors. She then finds out that the land is not zoned commercial, but residential. A shopping mall cannot be built on this property. What is Katniss$$ legal position?

Question $18$ options:

Katniss can sue Peeta for misrepresentation, have the contract rescinded and the court would award her damages of $$100,000$ for the money she spent to build a shopping mall.

Katniss can sue Peeta for misrepresentation and have the contract rescinded, thereby getting the purchase price for the property back.

Katniss is unfortunately bound by her agreement, and her mistake in trusting Peeta$$s answer.

Katniss is bound by the contract but she might be able to sue the City for specific performance. After she spent this much money, the City should rezone the property.