Question

Nora enters into a contract with Oceanic Transport, Inc., to insure and ship a painting from France to the United States for a certain price. But Oceanic makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would a. award damages to Oceanic for the mistake.

b. award damages to Nora for the mistake.
c. enforce the contract as is.
d. allow the parties to rescind the contract

Answer 1

d. allow the parties to rescind the contract

Step-by-step explanation:

In the context, Nora and Oceanic Transport Inc. enters into an agreement or contract to transport a piece of paintings from France to United States for a fixed price. But Oceanic Transport by mistake makes a calculation error in fixing the price which is actually 1000 dollar less than the true market value. In such a situation if Oceanic Transport files a case i the court, the court will allow both the parties to revoke the contract all together because a mistake in the contract allows to rescind the contract by the court.

Hence the correct option is (d).