Which One of the Following Mistakes Voids a Contract

question 122

Multiple Choice

Which one of the following mistakes voids a contract?

• A)Two parties contract for a shipload of coal, but unknown to both parties, at the time of the contract the ship had sunk and the coal had been lost.
• B)Two parties contracted for the sale and purchase of a painting for the price of $800.When the contract was written up, the price was incorrectly stated as $900.
• C)Sally and Mary had a serious misunderstanding about a term in the contract; the court found that the more reasonable interpretation was that of Sally.
• D)When Mr.and Mrs.Houston put their property up for sale, Sam, without speaking to the Houstons or to their agent about the land, offered close to the asking price because he thought it was suitable for growing wheat.After his offer was accepted, he learned it was not suitable for wheat.
• E)Sam bought three gallons of paint, but found he had made a mistake; two would have been sufficient.

---

Definitions:

Government Securities

Financial instruments issued by the government to finance its expenditures, offering a return in the form of interest payments to investors.

Bank Reserves

Bank reserves are the amount of cash that banks must hold either in their vaults or on deposit with a central bank, used to back deposits and ensure liquidity.

Money Supply

The sum of all financial assets that are readily available in an economy at a given moment, including cash on hand, deposits in banks, and other easily convertible assets.

Recession 1981-1982

The recession of 1981-1982 was a severe global economic downturn characterized by high inflation, interest rates, and unemployment, particularly impacting the United States.