BUS311_chapter_05

Rog8032805c05089 110indd 95 102612 537 pm section

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Unformatted text preview: . If you are simply ignorant of the subject matter, you are not making a mistake. If you buy a painting on eBay that is correctly identified as being by Juan Picasso, paying $5,000 for it because you did not know that the famous Picasso’s name is Pablo, you will not be able to void the contract when you discover you can only resell the painting for about $500 instead of the millions you planned on getting. Enjoy your painting! A unilateral mistake by one party to the contract generally will not void the agreement. If Bret offers to sell milk wholesale to Organic Grocery for $1.44 per gallon when he meant to type in $1.55 and Organic accepts his offer, Bret cannot get out of the contract. There is a possible exception if the other party knew or should have known about the mistake. For example, if Sam offers to sell his deluxe mansion in Beverly Hills for $50,000, it is quite obvious that some zeros were left out, and a court might let Sam avoid the contract. Fraud In addition to being a tort, fraud is also a way to avoid a contract. Review the elements in Chapter 2! We will add a few details here. F...
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