Nick,a real estate agent,decided to purchase a house for $300,000 after hiring architects,decorators,and electricians to examine it.However,Nick did not get the property appraised.After executing the sale contract with the homeowner,Kurt,Nick discovered that the house was actually worth only $150,000.Will Nick be entitled to rescind his contract with Kurt? Explain.

It is unlikely for Nick to be able to rescind the contract with Kurt for the sale of the house.As the real estate buyer,the court will most likely place the burden of the risk of mistake on Nick,as he purchased the house after failing to have the house appraised when he had the opportunity to do so.Nick was "consciously ignorant" of the actual value of the house.One situation in which an adversely affected person would bear the risk of mistake is when he has expressly contracted to do so.If Nick contracted to accept property "as is," he may be considered to have accepted the risk that his assumption about the property price might have been wrong.