Question

Jill contracts to purchase Kevin's automobile under the belief that she can sell it at a profit to Linda, but after Jill has bought the car, she finds out that Linda isn't interested in buying it.

a. Jill Cannot avoid the contract
b. Jill can rescind the agreement
c. Jill could rescind the agreement if she was mistaken in her estimate of the value of the auto.
d. Jill can sue Linda for detrimental reliance.

Answer 1

Jill cannot avoid the contract with Kevin nor rescind the agreement simply because she made an incorrect assumption that she would be able to sell the car to Linda at a profit. There was no mutual mistake, fraud, or illegality that would justify rescission. Jill also cannot sue Linda for detrimental reliance, as there was no promise from Linda to justify her reliance.

Step-by-step explanation:

Jill cannot avoid the contract based on the information provided. There's no indication that Jill was misled about the car's value or that there was any fraudulent misrepresentation—she simply overestimated Linda's interest in the vehicle, which is a unilateral mistake on her part about a potential future event. Jill's mistake regarding Linda's interest in the car does not constitute grounds to rescind the agreement.Rescission of a contract typically requires that there be a mutual mistake that is material to the agreement, fraud, duress, or illegality.

The fact that Jill was wrong in her belief that Linda would buy the car at a profit doesn't place any fault with Kevin, who sold her the vehicle. Additionally, Jill has no reason to sue Linda for detrimental reliance, as there was no promise from Linda that could have led Jill to reasonably rely on a future purchase.To sum up, Jill's unilateral mistake in her personal estimate and business projection regarding reselling the car does not meet the legal requirements to void or rescind the contract.