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.