A buyer makes a contract to purchase a parcel of land for re

A buyer makes a contract to purchase a parcel of land for residential use for $10,000. In the process of preparing for development, however, the buyer discovers a mineral deposit worth $500,000, which would have otherwise never been found. The seller learns about the discovery and sues to invalidate the contract, claiming mistake.

Is the discovery of the mineral deposit socially valuable? (Enter “Yes” or “No”)

Did the buyer discover the mineral deposit deliberately or casually? (Enter “Deliberately” or “Casually”)

Will a decision by the court to invalidate the contract affect the discovery of valuable mineral deposits in the future? (Enter “Yes” or “No”)

Now suppose that, prior to making the contract, the buyer had secretly conducted a costly aerial survey of the property (say, using a drone) that indicated a high probability of a mineral deposit. The buyer then went ahead with the purchase for $10,000 without revealing his discovery to the seller. Given this new assumption, did the buyer discover the mineral deposit deliberately or casually? (Enter “Deliberately” or “Casually”)

Given this new assumption, will a decision by the court to invalidate the contract affect the discovery of valuable mineral deposits in the future? (Enter “Yes” or “No”)

Solution

Ans:

Discovery of the mineral deposit is socially valuable as it could be helpful for the society.

Buyer did not know that there was mineral deposit underneath the land and found it accidentally and not intentionally.

It will not affect the discovery of valuable minerals

As buyer has done secret aerial survey of the property for potential valuable mineral deposit.