Broker Mike Stevens tells Andy Malcolm that certain land is zoned for industrial use. Although Stevens thought he was correct, the land was actually zoned for residential use. Malcolm relied on Stevens' representation and signed a contract to purchase the land.

A, Malcolm may rescind the contract.

B, The contract is void because of fraud.

C, The contract lacks mutual assent.

D, The contract is valid and enforceable because Stevens made an honest mistake.

Question

Business

Sasha Fox

8 May, 21:45

Broker Mike Stevens tells Andy Malcolm that certain land is zoned for industrial use. Although Stevens thought he was correct, the land was actually zoned for residential use. Malcolm relied on Stevens' representation and signed a contract to purchase the land.

A, Malcolm may rescind the contract.

B, The contract is void because of fraud.

C, The contract lacks mutual assent.

D, The contract is valid and enforceable because Stevens made an honest mistake.

+2

Answers (2)

Know the Answer?

Maldonado · Answer 1

The correct answer is a) Malcom may rescind the contract

Explanation:

The false testimony in a private or public document is a cause for rescinding or terminate the contract.

Kingston Roberson · Answer 2

A, Malcolm may rescind the contract is the answer.

Explanation:

Residential land refers to any piece of land including any building used or intended only for family dwelling. On the other hand, industrial land is the one utilized in things related to manufacturing, processing or raw materials. Even though Stevens though it was true, Malcolm can claim that he wasn't told the correct information, and as long as he proves it, he may rescind the contract.