Problem:
Daisy was reading classified ads at the Web site for her local newspaper. She saw an advertisement that read: "Chandelier offered for $10,000, probably worth even more." Daisy contacted and met with the seller. Although neither were experts, both Daisy and the seller genuinely believed that the piece was worth $10,000 at the very least. Daisy bought it for $10,000 After her purchase, Daisy immediately took the chandelier to a professional appraiser. As it turned out, the chandelier's value was approximately $1,000. Daisy is upset that she overpaid and is contemplating legal action against the seller. Which one of the following statements is true about the contract for sale of the chandelier? Bilateral mistakes about a subject matter's value make a contract voidable. There was a bilateral mistake as to subject matter giving Daisy grounds for avoidance. There was a bilateral mistake but Daisy has no grounds for avoidance. Testimony from the appraiser will help Daisy win a court case against the seller.