• Card 46 / 54: June and Autumn contract for the sale of June's stud horse, for breeding purposes, for $10,000. Unknown to either party, the horse is sterile. Which of the following is true?
    A) Autumn is entitled under the law to another of June's stud horses, which is not sterile.
    B) The contract can be rescinded, due to the parties' mutual mistake.
    C) The contract can be rescinded, due to June's unilateral mistake.
    D) Autumn is required to pay, anyway, because she assumed the risk that the horse might become sterile.

    Answer:
    B) The contract can be rescinded, due to the parties' mutual mistake.

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Business Law MCQ Exam#2 BUS201

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Attribution:  Maureen Shellooe Miller. Open Course Library: BUS&201 Business Law. The Open Course Library. Washington State Board for Community & Technical Colleges, Jul. 2014. http://www.oercommons.org/courses/business-law-bus-201
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