Contracts
Under NC's 'mutual mistake' doctrine, if both buyer and seller mistakenly believe a property is 4 acres when it is actually 3 acres, the contract may be:
AEnforced as written regardless of the mistake
BRescinded or reformed by a court to reflect the true facts✓ Correct
CAutomatically reduced in price by the missing acre
DVoided only by the buyer
Explanation
A mutual mistake of a material fact allows a court to rescind the contract and return the parties to their pre-contract positions, or to reform the contract to reflect the actual facts.
Related North Carolina Contracts Questions
- If a buyer in NC makes an offer with a due diligence fee of $2,000 and an earnest money deposit of $5,000, and then terminates during the due diligence period, what happens?
- In NC, the standard Offer to Purchase specifies that risk of loss if the property is damaged before closing falls upon:
- A NC buyer's offer contains a clause stating 'Seller shall make all repairs identified by home inspector.' This is an example of:
- Under NC law, a broker's listing agreement that has not yet expired but the seller instructs the broker to stop all marketing activity must result in:
- The Offer to Purchase and Contract in North Carolina is a standardized form jointly approved by which organizations?
- Under NC's NC Offer to Purchase, who is responsible for paying the buyer's closing costs (loan origination fees, title insurance, etc.) by default?
- A NC real estate contract becomes 'binding' when:
- In NC, when a seller accepts an offer but the buyer's lender cannot fund the loan on the agreed closing date, and time is of the essence, the most likely outcome is:
Practice More North Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →