Part5 -Mistakes

7.Candace agreed to buy a small farm north of Rainbow Falls, Iowa.Both she and the real estate agentbelieved the house qualified for a special type of financing for "first time farmers."Candace was intending on starting a truck farm by raising vegetables and flowers.After entering into a contract to purchase the property for $740,000, Candace learned there was no special financing for first time farmers in her situation.She contacts the real estate agent / seller and learns they were mistaken, too, as they truly believed she would be able to get special financing for a "beginning farmer" program.

Candace wishes to set aside the contract on grounds she and the real estate agent both were mistaken about an important term (that she could get the special financing).Assuming this is regarded as a "mutual" or "bilateral" mistake, can this sale be set aside?Explain why the law provides (or does not provide) for this remedy.

8.Randy purchased a 2014 Nissan Altima with a 2.5 liter engine from Mary (private sale).He paid $13,000 for the vehicle.Randy believed the 2.5 liter engine was a 6-cylinder but it is a 4-cylinder engine.Randy admits he made a mistake ("I was just not being very smart!I should have checked things out more carefully!").Legally can he demand his money back from the seller (and return the car to her) since he made a mistake about what it was he thought he was buying?Why or why not?