Substrate Record: qid 1722

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qid 1722 · law

Question: The owner of a parcel of land received the following letter from a buyer: "I will pay you $2,200 an acre for [theparcel]." The owner's letter of reply stated, "I accept your offer." Unknown to the owner, the buyer had intendedto offer only $2,000 per acre but had mistakenly typed "$2,200." As both parties knew, comparable land in thevicinity had been selling at prices between $2,000 and $2,400 per acre. Which of the following states the probable legal consequences of the correspondence between theparties?

1. There is a contract formed at a price of $2,400 per acre, as it is the highest price in the vicinity.
2. There is a contract, but the price per acre will be determined by a third-party appraiser.
3. There is no contract, because the parties attached materially different meanings to the price term.
4. There is no enforceable contract, because the buyer is entitled to rescission due to a mutual mistake asto a basic assumption.
5. There is no contract, because the buyer can argue that the price was a typo.
6. There is a contract formed at a price of $2,200 per acre, but the buyer can renegotiate the price.
7. There is no contract, because the parties have not met in person to discuss the deal.
8. There is a contract formed at a price of $2,000 per acre, as it is the lowest price in the vicinity.
9. There is a contract formed at a price of $2,000 per acre, as the buyer intended.
10. There is a contract formed at a price of $2,200 per acre, regardless of the buyer's true intention.

Our answer: J. There is a contract formed at a price of $2,200 per acre, regardless of the buyer's true intention. Source quote machine-checked (exact quote)

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