Lydia is involved in a dispute over an area rug she purchased from her neighbor,
ID: 414197 • Letter: L
Question
Lydia is involved in a dispute over an area rug she purchased from her neighbor, Tony. Tony's mother left him the rug in her will. Tony had no space in his home for it, so he offered it to Lydia. The two settled on what they thought was a fair price of $100. A month later, an antiques hunter saw a picture of the rug and advised Tony that it was in fact a rare Persian rug worth at least $100,000. After learning of his mistake, Tony demanded that Lydia return the rug at once. Lydia refused, stating, "A deal is a deal. a. Explain what constitutes a mistake for purposes of contract law. Distinguish between a unilateral and bilateral mistake. If Tony argues that the rug should be returned because of a unilateral mistake, will he win his case? b. Explain what constitutes fraud for purposes of contract law. If Tony sues Lydia for fraud, will he win his case? c. If Lydia is able to prove that neither party knew that the rug was a rare Persian rug, can she successfully defend against Tony's lawsuit? Explain. Each of your answers should contain at least 100 words.Explanation / Answer
a.Mistake for contract of law:In law terms a mistake is errenous belief that in law terms it may be true.It can argued effectively in defect or can be void.These kind of mistakes can be unilateral or common or mutual mistakes.these are 3 types of miatakes.
difference between unilateral and bilateral mistake:
the unilateral mistake is one in which one party may only be mistaken by fault.it is common mistake.This occurs when one party may have mistaken in regard to contract of law.
Bilateral or mutual mistake:It is when both the parties are mistaken in the terms of contract of law.if both the parties are mistaken it becomes voidable.Yes,tony can win the case because its a unilateral mistake and lyinda by willingness is doing fraud.
b.fraud for contract of law:in legal terms,fraud is an intentional deceving or unlawfull gain.it is done for advantage of a person.
Fraud can be proved by showing that the defendants thoughts intentionally involve:
1.giving false statement of material facts.
2.knowledge of the defendent already known that the contact is untrue.
3.Purposefull deceiving.
4.injury to alleged victim.
Yes, if tony sues lyinda she can win the case because lyinda is purposefully deceiving tony.
c.yes,of course lyinda can win the case if she proves that she also do not have knowledge that the rug is so valuable.but when tony asked lyinda to return the rug she refused which indicates that she is doing willingly.hence if is proved of her intentions the lyinda will loose the case
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