Michael Van Gough an attorney experienced in real estate transactions and his wife Kimberly were interested in buying certain property being sold by Carol Martin for her former husband Johnny Martin. When Van Gough asked Carol Martin if there had been any appraisals of the property, she replied that there had been several appraisals, ranging from $175,000 to $192,000. (At trial, Carol claimed that she understood the term appraisal to mean any opinion as to the market value of the house.)
The Van Gough did not request a written appraisal of the property until after signing an agreement to purchase the property for $175,000. Carol Martin then provided them with a written appraisal that listed the house’s value as $165,000.
When the Van Gough refused to go through with the deal, Johnny Martin brought suit to recover the difference between the agreement price and the price for which the house was later sold.
The Van Gough claimed that the contract should be rescinded on the basis of their mistaken assumption as to the value of the house.
What kind of mistake was made in this situation?
How should the court rule on this issue?
Generally, what ethical principles as expressed in public policies are in conflict here and in similar situation in which parties enter into a contract with mistaken assumptions?
2000 words
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2 answers
Your really expect somebody to give you a 2000 word reply, with a given font, and double spacing ?????
(notice the correct way of double spacing)