1) Peggy offers to sell Shelby a purebred Scottish terrier puppy for $800. Shelby and Peggy do not
discuss the dog's ancestry, but Shelby believes that the dog came from champion lines and agrees to the
price. Shelby later discovers that the puppy is worth only $200. Can Shelby rescind the contract based on
a. Yes, because the dog was clearly not worth $800.
b. Yes, because Shelby had a duty to investigate.
c. Probably not, because Shelby made a mistake about the dog's value, not a mistake about
a material fact.
d. Probably so, because Shelby made a mistake about an immaterial fact
2) Blake is seeking to buy a mare that he can breed. Levi tells Blake about a horse that Levi wants to sell,
stating that he (Levi) believes that the horse is extremely healthy and will be able to foal within eighteen
months. After two years, the horse still has not foaled. The veterinarian informs Blake that the horse is
physically incapable of breeding. In Blake's lawsuit to rescind the contract, it is:
3) Mark agrees to buy Dale's one-half-ton truck so that he can pull his trailer. Both Mark and Dale believe
that the truck is large enough to do the job. After they complete the deal, Mark hitches the truck to the
trailer and attempts to pull the trailer, but without success. The contract between Mark and Dale can be
rescinded because of: