In Which of the Following Instances Would the Court Most

question 103

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; 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; 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 that function.

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Definitions:

Profits and Losses

A financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year.

Limited Liability Partnership

An agreement where a number of partners have their liabilities restricted, such that they are not individually accountable for the business's financial obligations.

Limited Liability Company

A flexible form of enterprise that blends elements of partnership and corporate structures, protecting members against personal liability beyond their investment.

General Partnership

A form of business partnership where all partners share both the management and the liability for the company's debts.