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Question
Kathleen sells Richard a racehorse for $1,000. Both Kathleen and Richard think that the horse is too slow to win any races. Richard then enters the horse in a race, and it wins easily. He enters it in more races, and the horse soon wins more than $1 million. Kathleen tries to rescind the contract to sell the horse, claiming that it was worth more than $1,000. A court willa. cancel the contract due to Kathleen's failure to know the horse's value.
b. cancel the contract due to Richard's failure to know the horse's price.
c. cancel the contract due to the difference between the contract price and the horse's true value.
d. enforce the contract.
Answer
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