Mutual Mistakes In Contract Law
Mutual Mistakes in Contract Law
4-3 Mutual Mistakes in Contract Law
Southern New Hampshire University
Abstract
In contractual law, a mutual mistake is: “Where a mistake of both parties at the time of contract was made as to a basic assumption on which the contract was made has a material effect on the agreed exchange of performances, the contract is voidable by the adversely affected party unless he bears the risk of the mistake under the rule stated in 154.” (Rasmusen, 1993)
4-3 Mutual Mistakes in Contract Law
This case is a perfect example of mutual mistake since both parties were ignorant to the proper facts. Josh Hartly and the salesperson were both uninformed of the fact that a 3.2 liter V-6 engine was no longer manufactured by that manufacturer, thus making them parties to a mutual mistake …show more content…
In the famous Michigan case of Sherwood v. Walker, this very topic was at hand. Sherwood had bought a cow from Walker under the pretense that it was a barren cow. “Sherwood agreed to purchase the cow for $80. If the cow had been fertile it would have been worth $750 to $1000. Walker later discovered that the cow was with calf and refused to complete the transaction.” (Sherwood v. Walker, n.d.) Though the case was won by Sherwood and he was allowed to keep the cow, it was later reversed because, ”the mistake went to the whole substance of the agreement. This mistake was not about the mere quality of the cow but to its very nature, i.e. a fertile cow as opposed to a barren cow.” (Sherwood v. Walker, n.d.) In the case of Josh and the salesman, the contract was based in whole on the fact that Josh wanted a 3.2 liter V-6 and it turned out that it was no longer manufactured. It only makes sense that there agreement had it ended up in a contract would be
4-3 Mutual Mistakes in Contract Law
Southern New Hampshire University
Abstract
In contractual law, a mutual mistake is: “Where a mistake of both parties at the time of contract was made as to a basic assumption on which the contract was made has a material effect on the agreed exchange of performances, the contract is voidable by the adversely affected party unless he bears the risk of the mistake under the rule stated in 154.” (Rasmusen, 1993)
4-3 Mutual Mistakes in Contract Law
This case is a perfect example of mutual mistake since both parties were ignorant to the proper facts. Josh Hartly and the salesperson were both uninformed of the fact that a 3.2 liter V-6 engine was no longer manufactured by that manufacturer, thus making them parties to a mutual mistake …show more content…
In the famous Michigan case of Sherwood v. Walker, this very topic was at hand. Sherwood had bought a cow from Walker under the pretense that it was a barren cow. “Sherwood agreed to purchase the cow for $80. If the cow had been fertile it would have been worth $750 to $1000. Walker later discovered that the cow was with calf and refused to complete the transaction.” (Sherwood v. Walker, n.d.) Though the case was won by Sherwood and he was allowed to keep the cow, it was later reversed because, ”the mistake went to the whole substance of the agreement. This mistake was not about the mere quality of the cow but to its very nature, i.e. a fertile cow as opposed to a barren cow.” (Sherwood v. Walker, n.d.) In the case of Josh and the salesman, the contract was based in whole on the fact that Josh wanted a 3.2 liter V-6 and it turned out that it was no longer manufactured. It only makes sense that there agreement had it ended up in a contract would be