Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On March 1, 2021, Barry offers to sell his land of four (4) acres for $75,000 to his friend, Michelle. Barry and Michelle talked for

On March 1, 2021, Barry offers to sell his land of four (4) acres for $75,000 to his friend, Michelle. Barry and Michelle talked for several days about the value of the land and whether $75,000 is the actual true value of the property. On March 10, 2021, Michelle accepted Barrys offer. Michelle agreed to buy the four (4) acres of land from Barry for $75,000. On March 15, 2021, Barry and Michelle signed a written contract that Michelle would buy the 4 acres of land for $75,000, and Michelle paid Barry $75,000 for the 4 acres of land. On March 25, 2021, Barry and Michelle were chatting about the 4 acres of land and Michelle told Barry that she had done some additional research and the value of the land on landvalue.net valued the land closer to only $50,000. Barry nodded his head and said, yea the land might only be worth $50,000. After Barry and Michelle both agreed that the TRUE value of the land was closer to $50,000 instead of the amount Michelle paid of $75,000, Michelle asked Barry if Barry would return $25,000 to Michelle, as Michelle argued she had overpaid Barry. Barry said NO and refused to change the contract, keeping the $75,000 Michelle had paid. Michelle was very upset and believed that Barry should return $25,000 to Michelle because Michelle believed she had overpaid Barry for the 4 acres of land. Michelle hires Attorney K-See Bargain, and Michelle proceeds with a lawsuit against Barry, claiming that Michelle overpaid Barry when she paid $75,000 for the land AND on March 25, 2021, Barry agreed the land was likely only worth $50,000 instead of the amount Michelle paid of $75,000. Michelle argued to the Court that she and Barry made a bilateral mistake of fact and that Barry should be required to return $25,000 to Michelle OR the Court should void the contract based upon mutual mistake of fact. The Court will most likely grant the following relief: a) Require Barry to return the extra $25,000 to Michelle because the contract price of $75,000 was a bilateral mutual mistake of fact. b) Uphold the contract as VALID and Barry keeps the $75,000 Michelle paid to Barry for the 4 acres of land. Michelle keeps the 4 acres of land. c) Find that there was a unilateral mistake of fact by Michelle, but uphold the contract because the contract is enforceable under the Statute of Frauds.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management And Policy

Authors: James C. Van Horne

12th Edition

0130326577, 9780130326577

More Books

Students also viewed these Finance questions

Question

Explain the development of human resource management (HRM)

Answered: 1 week ago