A Contract Was Made for 125 Bales of Cotton to Arrive

question 15

Multiple Choice

A contract was made for 125 bales of cotton to arrive on a ship named "Peerless" from Bombay.Unbeknownst to either party to the contract,there were two ships named "Peerless," both of which were sailing from Bombay.One sailed in October and the other in December.The buyer had in mind the ship sailing in October,but the seller had in mind the ship sailing in December.Each party held his belief in good faith.The goods failed to arrive on time.If the buyer sues for breach of contract:

• A) the seller must pay damages because the seller breached.
• B) the seller is guilty of fraud in the inducement for failing to disclose to the buyer which ship would contain the goods.
• C) no contract exists due to mutual mistake of fact as to the existence or identity of the subject matter of the contract.
• D) All of these.

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