James Orally Entered into a Contract to Sell 100 Tonnes

question 8

Multiple Choice

James orally entered into a contract to sell 100 tonnes of cotton to Bryan for a price of $1000 per ton. Both parties subsequently signed a written contract. However, the written contract mistakenly stated the price of cotton as $1100 per ton. While signing, Bryan failed to notice this mistake. Which of the following contract terms will govern in such a scenario?

• A) Both parties must consider the contract null because a mutual mistake has occurred.
• B) Bryan can hold James responsible for the error and cancel the contract.
• C) James can nullify the contract stating Bryan's mistake of not noticing the error.
• D) Both parties must carry on with the contract as agreed orally.