Case Study: Jud Vs. Kraus

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Wheeler signed a contract to purchase 10 acres of land in Idaho from the Krauses. If Jud offered the Krauses considerably less for their property than its possible market value and the Krauses accepted the offer, could they avoid the contract on later learning that they might have sold it for a higher price? If Jud offered the Krauses one price and inadvertently typed a different, higher price into the contract, can Jud be held to the typewritten amount? According to our textbook, a contract is defined as “a set of promises constituting an agreement between parties giving each legal duty to the other and also the right to seek a remedy for the breach of the promises/duties owed to each. The elements of an enforceable contract are competent parties, a proper or legal purpose, consideration (an exchange of promises/duties), and mutuality of agreement and of obligation” (Miller & Hollowell, 2011). Considering that the contract as already be…show more content…
In this situation, we would look at unilateral mistake which typically involves a material fact. “In general, a unilateral mistake does not afford the mistake party any right to relief from the contact” which “in other words, the contract is enforceable (Miller & Hollowell, 2011). There are two exceptions to where the contract may not be enforceable, “(1) if the other party to the contract knows or should have known that a mistake was made or (2) if the error was due to a substantial mathematical mistake in addition, subtraction, division, or multiplication and was made inadvertently and without gross negligence (intentional failure to perform a duty reckless disregard of the consequences)” (Miller & Hollowell, 2011). References Miller, W. L., & Hollowell, W. E. (2011). Business Law Text & Exercises Sixth Edition. Mason: South-Western, Cengage

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