If,at the time a contract was made,the subject matter did not exist,without the knowledge of the seller,the contract is
A)a mistake in terms of fact and not assumption.
B)subject to the tort of deceit.
C)void,according to the Sale of Goods Act as well as under the common law.
D)valid; the purchaser stands the loss.
E)voidable at the option of the court.

Question

Quizplus · Accepted Answer

According to the Sale of Goods Act and common law, for a contract to be valid, the subject matter must exist at the time of the contract. If it does not exist, the contract is considered void. This is a rule of law and not a mistake of fact or assumption, making options A and B incorrect. The contract cannot be enforced in court, and therefore, the purchaser does not stand the loss, making option D incorrect. The option of voiding the contract is not a matter of the court's discretion, making option E incorrect.

If,at the Time a Contract Was Made,the Subject Matter Did