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Multistate Bar Examination Practice Question

Two parties enter into a contract for the sale of a piece of jewelry. The seller believes the jewelry is costume jewelry worth $100, but the buyer recognizes it is an antique piece worth $10,000 and says nothing. Later, the seller discovers the true value of the jewelry and seeks to rescind the contract, claiming there was a mistake. Can the seller succeed?

  • No, because the seller's mistake does not meet the standard for rescission of a contract.

  • Yes, because the buyer had reason to know the seller was mistaken and remained silent.

  • Yes, because contracts with mistakes are sometimes voidable depending on the situation.

  • No, because both parties agreed to the terms of the sale.

Multistate Bar Examination
Contracts
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