Question

Randolf, a wealthy connoisseur of arts, was invited to an art exhibition. He became very interested in one of the showcased paintings and approached the manager to buy the piece. While he was interested in the painting (catalogue number 1201), the art gallery's manager mistakenly assumed he was interested in another piece. When it was the time to complete the transaction, the manager realized that he had instead sold and delivered the wrong painting. He immediately clarified this with Randolf. In this instance, the contract can be canceled by either party for?

a. mutual mistake
b. unilateral mistake and mutual mistake
c. mutual or unilateral mistake
d. mutual mistake and misrepresentation

Answer 1

The correct answer is letter "A": mutual mistake.

Step-by-step explanation:

A mutual mistake is a fault committed by the two parties of a transaction that usually leads them to dissolved the initial contract to sing a new one with the corrections necessary. This is done to keep the good relationship between the buyer and the seller so both can consider each other for future businesses.

In the example, the mutual mistake Randolf and the gallery's manager made was not specifying which piece of art was to be sold.

Answer 2

The answer is A. Mutual mistake

Step-by-step explanation:

A contract is an agreement ( whether written or verbal ) between two parties that is legally binding.

A mutual mistake occur in a contract when both parties to a contract are mistaken about a material fact. It is a situation where the parties to a contract have identical misconception about a material fact in the contract.

In the explanation given in the contract between Randolf and the Art gallery manager, it is obvious that the art painting that is to be bought and sold was not well clarified by both parties, and the art manager acted based on an invalid assumption.

Hence the correct answer to this question is A. Mutual mistake