Question
Melanie is single, age 25 and owns a paid in full 2015 blue Chevy Truck that she believes had a fairly high market value. It
Melanie is single, age 25 and owns a paid in full 2015 blue Chevy Truck that she believes had a fairly high market value. It took Melanie about 4 years to pay off the truck.
Benjamin, Melanie's close boyfriend, had done his research on Melanie's truck and knows that the truck is actually worth about $20,000 or more.
Benjamin has been in the truck industry and is well aware of the different values of trucks. Melanie is somewhat unknowledgeable about the truck industry and the true value of her truck.
After a romantic Valentine's Day dinner at the local burger shop, Benjamin offered to buy Melanie's Blue Chevy Truck for $5000.00. Melanie felt uneasy about the price as she thought $5000.00 was too low, but she loved Benjamin and wanted to make him happy.
Melanie had also done a little research and she knew that $5000.00 was somewhat in the low ball-park range for selling the truck.
However, after Melanie and Benjamin finish dinner, they take a walk through the park holding hands. Benjamin brought up the truck again and offered to buy the Blue Chevy Truck for $5000.00. Melanie wrapped her arms around Benjamin and gave him a big hug. Benjamin then said to Melanie, "if you are not willing to sell me your truck for $5000.00, I don't know if I can date you anymore."
Melanie did not want Benjamin to break off the relationship. Thus, Melanie reluctantly said, "Okay, I will sell my truck to you for $5000.00." Melanie and Benjamin traveled back to Melanie's house where they wrote the agreement.
Melanie and Benjamin signed a written contract that Melanie would sell the truck to Benjamin for $5000.00. They both signed a written agreement on November 14, 2021.
The next day, November 15, 2021, Benjamin brought Melanie a check for $5000.00 (with a little heart on the bottom of the check) and Melanie 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, November 15, 2021, Melanie went online and started to research the blue book value of her Truck she sold to Benjamin. Melanie realized without a doubt that the truck was worth much more than $5000.00.
Melanie called Benjamin that same evening, November 15, 2021, and said she had 'done some more research on the value of the truck and wanted to undo the contract. It wasn't fair. You owe me more money than $5000.00. You took advantage of me because I love you."
Melanie felt that Benjamin had used undue influence on Melanie to buy her truck at a low price because Benjamin knew that Melanie wanted to stay his girlfriend.
Melanie asked Benjamin to return the truck and she would give Benjamin back the $5000.00 OR Benjamin needed to pay Melanie more money for the truck.
Benjamin said "NO! I bought the truck fair and square!"
Melanie immediately dumped Benjamin and sued Benjamin arguing that Benjamin used undue influence upon Melanie to purchase the truck for $5000.00 and $5000.00 was completely an unfair price.
Melanie filed a lawsuit against Benjamin in the local District Court, asking for the Court to VOID the contract and order that Benjamin return the truck to Melanie and Melanie would return the $5000.00 to Benjamin.
WHICH IS ENTIRELY TRUE:
a.The Judge found that the contract was invalid because Benjamin had been dishonest with Melanie about the actual "value" of the vehicle and used undue influence over Melanie to buy the truck for $5000.00 because of their romantic relationship.
b.The Judge found that the contract was invalid because BOTH parties, Benjamin and Melanie, were mistaken about the actual value of the truck (the Judge found the truck was worth $20,000), and it was a mutual bilateral mistake of value, unwinding the contract, in addition to Benjamin's use of undue influence over Melanie.
c.The Judge found the contract VALID. The Judge enforced the contract and Benjamin was allowed to keep the truck. Melanie would keep the $5000.00 paid.
d.None of the above
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