Asked by Victoria Ferguson on Jun 11, 2024
Verified
The Peerless ship case referenced in the textbook is a classic example of a ________ mistake.
A) unilateral
B) mutual
C) conditional
D) secondary
E) non-material
Mutual Mistake
A situation in contract law where all parties involved have a mistaken belief about a vital fact upon which the contract is based.
Peerless Ship
Referencing a specific case in contract law regarding the sale of goods when there is a misunderstanding about which specific goods are being sold.
- Examine the effects of both mutual and unilateral errors on contract agreements.
Verified Answer
JB
Jeremiah BergoniaJun 11, 2024
Final Answer :
B
Explanation :
The famous story of the Peerless ship has taught generations of students the importance of being very clear in defining material facts in any contract.The contracting parties had agreed that the vessel Peerless would deliver the cotton they were exchanging.Unfortunately for them,there were actually two ships named Peerless! So,when the deal was made,one party had one Peerless in mind while the other meant the second Peerless.This was a mutual mistake,an error by both parties about a material fact pertaining to the contract.
Learning Objectives
- Examine the effects of both mutual and unilateral errors on contract agreements.