Question

Which of the following is a situation, term, or event that makes an otherwise valid agreement invalid?

a) Mistake of fact
b) Subsequent impossibility
c) Anticipatory breach
d) All of the above

Answer 1

Mistake of fact, subsequent impossibility, and anticipatory breach are situations, terms, or events that can invalidate a otherwise valid agreement.

Step-by-step explanation:

d) All of the above. Mistake of fact, subsequent impossibility, and anticipatory breach are all situations, terms, or events that can make an otherwise valid agreement invalid.

Mistake of fact refers to a situation where one or both parties make an error about a material fact related to the agreement. Subsequent impossibility occurs when an event happens after the agreement is made, making it impossible to fulfill the terms. Anticipatory breach refers to a situation where one party indicates before the agreed-upon date that they will not fulfill their obligations.

For example, if Party A agrees to sell a car to Party B, but it later turns out that the car was stolen and Party A unknowingly sells stolen property, the agreement would be invalid due to a mistake of fact. Similarly, if Party A agrees to rent an apartment to Party B for a specific period, but the apartment is destroyed by a fire before the agreed-upon date, the agreement would be invalid due to subsequent impossibility.