Question
Otto inherited an old safe from his uncle.Otto did not have the combination to the safe and had no idea of its contents, if he
Otto inherited an old safe from his uncle. Otto did not have the combination to the safe and had no idea of its contents, if he had any. However, he sold the safe to his friend Marcel “as is” for $35. When Marcel hired a locksmith to open the safe, he found $25,000 in cash. Now Otto wants to terminate the contract, claiming that the doctrine of mistake gives him that right. Identify the precise statement.
A.:Otto is right, because there is a mutual error here since neither party knew about the money inside the safe.
B.Otto is right, because it would be unfair for him to let Marcel keep the money.
C.Otto is not correct, because Otto assumed the risk of error.
D. Otto is not right, because the rescission appeal only applies when there is a unilateral error; Here both parties were wrong.
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South-Western Federal Taxation 2020 Comprehensive
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