Anderson Ltd

question 9

Multiple Choice

Anderson Ltd. was negotiating a contract with the Bolton Manufacturing Co. for a large number of components for the office equipment Anderson Ltd. sells. The normal way of pricing the components is "by the piece," but Bolton Manufacturing sent a written offer to Anderson to sell the components at $5 a kilogram. The components would normally cost about $5.50 each and there are about two of them to the kilogram. After receiving Anderson Ltd.'s acceptance of the offer, Bolton realized the mistake it had made and is now refusing to perform the contract. Anderson has sued for breach of contract.

• A) Bolton will succeed since a mistake as to value makes the contract void.
• B) Since the mistaken phrase is ambiguous, the courts will not interpret it and Bolton will succeed.
• C) A reasonable person would have realized that there was a mistake about the price so Anderson will not be allowed to snap up the offer.
• D) There is offer, acceptance and consideration from each party and, since the court will not consider the adequacy of consideration in a contract, Bolton has no grounds to refuse to perform the contract.
• E) While a reasonable person might not have realized that there was a mistake in the offer, the court will not allow Anderson to enforce the contract if doing so will cause hardship for Bolton.

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Definitions:

Bread Riots

Public disturbances arising from shortages, high prices, or the lack of availability of bread and other staple foods, historically common in times of scarcity and economic distress.

Thomas Drayton

A Confederate brigadier general during the American Civil War, known for his service in the Confederate States Army.

Confederate Cause

The ideological and political movement advocating for the secession of Southern states from the United States to preserve slavery and states' rights, leading to the American Civil War.