Asked by Jenae Jenkins on May 01, 2024
Verified
Carlos and David contract for the sale of five hundred head of Carlos's cattle for $195 per head. Unknown to either party, an unforeseen storm has struck the herd and many of the cattle have died. David is
A) entitled to recover the value of the lost cattle.
B) not required to pay due to the bilateral mistake.
C) not required to pay due to the unilateral mistake.
D) required to pay because he assumed the risk the cattle might die.
Bilateral Mistake
A situation in a contract where both parties are mistaken about a fundamental fact that is central to the contract.
Unforeseen Storm
A sudden and unexpected weather event with potentially destructive effects.
- Recognize under what situations a contract can be voided on the grounds of inaccuracies.
- Differentiate between unilateral and bilateral errors and their impacts on contractual agreements.
Verified Answer
JF
Jacob FowlerMay 04, 2024
Final Answer :
B
Explanation :
The correct answer is B) not required to pay due to the bilateral mistake. This is because both parties were unaware of the significant fact that the cattle had died at the time of the contract, which materially affects the agreed-upon exchange. In contract law, a bilateral mistake where both parties are mistaken about a basic assumption on which the contract was made can render the contract voidable.
Learning Objectives
- Recognize under what situations a contract can be voided on the grounds of inaccuracies.
- Differentiate between unilateral and bilateral errors and their impacts on contractual agreements.