In Which of the Following Instances Would the Court Most

question 153

Multiple Choice

In which of the following instances would the court most likely hold the contract to be void on the basis of a mistake?

• A) Barry and Mary contracted for the sale and purchase of a boat for the price of $1200. When the contract was written up, the price was incorrectly stated as $1700.
• B) Two parties contracted for a shipload of fish, but unknown to both parties, at the time of the contract the ship had sunk and the fish had been lost.
• C) Carson and Leno had a serious misunderstanding about a term in the contract and the court found that the more reasonable interpretation was that of Leno.
• D) Sarah bought three rolls of wallpaper, but found she had made a mistake, since two would have been sufficient.
• E) Although the seller said nothing to the buyer about the characteristics of the answering machine, the buyer bought it, thinking that it would tell him the date and time of the call. Later, he learned that it did not perform this function.

---

Definitions:

Net Profit Margin

A financial metric that shows the percentage of revenue that remains as profit after all expenses, interest, and taxes have been deducted.

FIFO

First In, First Out (FIFO) is an inventory valuation method where goods that are first acquired are the first to be sold, useful in managing inventory and costs.

Nonpoint Pollution

Pollution that originates from multiple and diffuse sources rather than from identifiable or discrete sources, common in agricultural and urban runoff.

Point Pollution

Pollution that can be traced to a single, identifiable source, such as a factory's waste discharge pipe.