In which of the following would the court find that the contract is void (i.e., not a binding agreement)?
A) Ry and Ali, two parties to a contract, each had a different understanding about the term "royalties" in the contract. The court found Ali's interpretation the more reasonable.
B) Kramer, thinking that the city was going to build a new school in the area, offered to buy a house. She had not talked with the seller or his agent about the possibility of a school. After the offer was accepted, she learned that there would be no such new school.
C) Joe bought pizzas, but after eating one he realized that purchasing them was a big mistake.
D) After some negotiation, Paul accepted Monafo's offer to sell him the painting for $5,000. When the contract was put in writing, the price was incorrectly stated as $500. Monafo could prove the terms of the oral contract.
E) Two parties contracted for a tanker of oil, but unknown to either of them at the time of the contract, the tanker had caught on fire and all the oil had burnt.

Question

Quizplus · Accepted Answer

The contract is void due to mutual mistake of fact, as the subject matter of the contract (the oil) was destroyed before the contract was made, making performance impossible.

In Which of the Following Would the Court Find That