Marissa, who is 1 week away from her 18^th birthday, needs a car before she starts her new job. She learns that her high-school principal is willing to sell his car for a reasonable price. Marissa and Victor talk about the car in Victor’s office, and Victor tells her that the engine on the car is in good shape and that he does not know of any problems with the car. Marissa agrees to pay Victor $1,000 for the car “as is”, after Victor convinces her that is a fair price. Marissa and Victor sign a short contract memorializing the agreement. Both parties agree that Victor will deliver the car the next day, Saturday, by 10:00 a.m., so Marissa can use it to get to her new job by noon. After his meeting with Marissa, Victor learns that the car is being recalled by the manufacturer for a faulty engine.

The next day, Victor delivers the car to Marissa. Before he hands the car over, Victor tells Marissa he will sell the car only if she pays him an additional $300 since he had the car detailed and made her a second set of keys. Marissa, who is worried about getting to her new job on time, agrees to pay the extra money, but tells Victor she cannot do so now. Victor tells her she must deliver the extra $300 to him within two weeks. Marissa then gives Victor $1,000, and Victor leaves without telling Marissa anything about the recall. Marissa never gives Victor the additional $300.

Three months later, Marissa is very angry at Victor. She has done some research and determines the car is worth only $500. More importantly, she is experiencing problems with the car and finds out that Victor had been notified about the engine issues. She asks Victor for a refund, but he refuses to give her one.

Based on the common law rules we have learned in class, answer the following:

1.) Name two ways (2 legal rules or defenses), other than fraudulent misrepresentation or negligent misrepresentation (or any element of fraud), in which Marissa may be able to claim the K is voidable? Explain each legal theory thoroughly with respect to this scenario.

2.) Speaking of fraud, can Marissa sue Victor for fraudulent misrepresentation? What would she have to prove? Do you think she will win – explain your answer by evaluating Marissa’s chances with respect to each element of fraudulent misrepresentation?

3.) Regardless of Marissa’s possible claims discussed in #1 and #2 (pretend Marissa has no claims to challenge the K), does Victor have a breach of K claim against Marissa for failing to pay the additional $300 under the modified K?

4.) Let’s assume Victor never knew about the manufacturer’s recall. Can Marissa get out of the K with Victor based on the law of mistake with respect to the condition of the engine? Explain thoroughly. What is the remedy for a mutual mistake?

5.) If it can be shown that the value of the vehicle is, in fact, only $500, what effect does the lower value in and of itself (on its own) have on the enforceability of the contract?