Albert found a stone in his yard and took it to Bob, a jeweler, for evaluation. Although Bob knew what the stone was, he told Albert that he wasn't sure as to the nature of the stone, but that he thought it was a topaz. Bob then offered to buy the stone for $25 and Albert agreed. Later Albert found out the stone was an uncut diamond worth about $700.

a. The sale was a valid contract that should be enforced by the law.

b. This contract can be rescinded based upon mistake as to the identity of the subject matter.

c. This contract can be rescinded based upon fraud.

d. This contract cannot be rescinded based upon fraud.

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Law

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14 February, 19:38

Albert found a stone in his yard and took it to Bob, a jeweler, for evaluation. Although Bob knew what the stone was, he told Albert that he wasn't sure as to the nature of the stone, but that he thought it was a topaz. Bob then offered to buy the stone for $25 and Albert agreed. Later Albert found out the stone was an uncut diamond worth about $700.

a. The sale was a valid contract that should be enforced by the law.

b. This contract can be rescinded based upon mistake as to the identity of the subject matter.

c. This contract can be rescinded based upon fraud.

d. This contract cannot be rescinded based upon fraud.

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Answers (1)

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Kathryn Morrison · Answer 1

a

Explanation:

Albert was a jewler, he should have known that it was an uncut diamond. Because he didn't the transaction was made and he was fooled. Unless both agreed upon fixing the "mistake," it cannot be changed.