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S can legally withdraw from the contract on the ground of mistake because under Article 1331, In order that mistake may invalidate consent, it should refer to the substance of the thing which is the object of the contract, or to those conditions which have principally moved one or both parties to enter into the contract. Mistake as to the identity or quality of one of the parties will vitiate consent only when such identity or qualifications have been the principal cause of the contract. A simple mistake of account shall give rise to the correction.7. S agreed to deliver to B 500 cavans of rice at P1,000.00 per cavan. S delivered only 490 cavans deliberately misrepresenting that delivery consisted of 500 cavans. Can B ask the court to annul the contract on the ground of fraud? Why?B can ask the court to annul the contract on the ground of fraud because this situation is a representation of Causal Fraud (fraud used by a party to induce the other to enter into a contract without which the latter would not have agreed to, taking into account the circumstances of the case) or fraud employed to secure the consent of the other party, which is a ground for the annulment of a contract although it may give rise to an action for damages.8. S sold to B a commercial lot for P 1 million. S assured B that it is certain that in two years time the land would increase in market value by 50%, B relied on the representation of S and bought the lot . It turned out that the market value even decreased to P 800,000.00. Is S liable to B for the misrepresentation? Under Article 1340, The usual exaggerations in trade, when the other party had an opportunity to know the facts, are not in themselves fraudulent.(n) The article refers to the usual exaggerations in trade which are not fraudulent by themselves when the party has the opportunity to investigate and know the true facts.