Question

In: Operations Management

If a seller contracts to sell a painting that he believes is a​ child's painting but...

If a seller contracts to sell a painting that he believes is a​ child's painting but it turns out to be an undiscovered​ Picasso, also unbeknownst to the buyer at the time of​ purchase, then​ _______.

A.

the contract can be disavowed

B.

the contract can be rescinded

C.

this mutual mistake of value does not excuse the seller from the contract

D.

the contract is void

E.

this mutual mistake of value would excuse the seller from the contract

Solutions

Expert Solution

Answer: C. this mutual mistake of value does not excuse the seller from the contract

Explanation:

As per contract law, a contract can be avoided if there is a mistake but the mistake should be a mistake of fact. Here both seller and buyer have made a mistake about the value of the painting and not about the material fact or basic assumption on which the contract is made. As it is a mistake of value rather than a mistake of fact, the contract cannot be avoided and it does not excuse the seller from the contract. Hence the answer is option C and all other options are wrong.

keosha answered 2 years ago
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