BUSINESS LAW
Mike enters into a contract with Jane to sell his vintage car for $20,000. Mike believes that the car is in perfect condition, but it actually has a major mechanical issue that would cost $5,000 to repair. Jane later discovers the issue and wants to cancel the contract. Can she do so? What are the legal principles at play?
This question tests your understanding of contract law and the principles of misrepresentation and mistake. To answer the question, you would need to discuss the requirements for a valid contract, the elements of misrepresentation and mistake, and the remedies available to Jane if the contract is found to be voidable. You would also need to apply these legal principles to the specific facts of the case, taking into account any relevant statutes or case law.
