Question

Organic Farms Company contracts to buy two tracts of land from Prime Bottomland, Inc. Both parties believe that the two tracts are adjacent, but in fact, they are not. Prime Bottomland is still willing to sell the land, but under these circumstances, the deal would adversely affect Organic Farms. Because of the parties’ belief about the adjacency of the property, their contract is:

a. unavoidable.
b. unconscionable.
c. unenforceable.
d. voidable.

Answer 1

D) voidable

Step-by-step explanation:

Since both parties (Organic and Bottomland) made a bilateral mistake regarding the adjacency of the properties, the contract is voidable.

A voidable contract is a contract that may be voided or rescinded for a series of reasons. Only the parties involved in the contract can decide whether to void or rescind the contract or not.

In this case, Organic Farms can decide to void this contract since both parties made a bilateral mistake believing that the tracts were adjacent, and the fact that they are not, seriously affects them in a negative way.