Mike Is Given a Bottle of Wine as a Gift

question 44

Multiple Choice

Mike is given a bottle of wine as a gift. Josh, a neighbour, sees it and recognizes it as a very rare bottle. Knowing that Mike doesn't drink, Josh offers him $300 for it, which he believes to be a fair price. Mike happily agrees. Later, when Josh is looking up the price of the bottle on eBay, he realizes that it is not a valuable bottle of wine at all. He had confused it with another vintage. Josh, who is taking a law class, wonders whether or not he could have the contract set aside. Which of the following statements is true?

• A) It is unlikely to be set aside unless Josh could show that it would be unfair or unjust to enforce it.
• B) It will automatically be set aside on the basis of the doctrine of mistake.
• C) It will only be set aside if Josh's mistake rendered the contract illegal.
• D) A contract can never be set aside where a mistake has been made.
• E) The contract will only be set aside if Josh's mistake was the result of willful blindness.

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