Jonathan sells crates of tomatoes on board the SS Apapa to Margaret. At the time of the sale, both parties are unaware that the crates were washed overboard. What is the status of the contract between Jonathan and Margaret.
A) Margaret may sue Jonathan for the tort of deceit.
B) Margaret is the new owner of the tomatoes and has to bear the loss.
C) Jonathan is still the owner of the shipment. Jonathan bears the loss and will have to refund Margaret's money.
D) The ownership passed to Margaret, but Jonathan is still in possession and so he is liable.
E) Margaret has to pay the agreed price and recover from her insurance.

Question

Quizplus · Accepted Answer

The contract is void due to mutual mistake as both parties were unaware that the goods were lost at the time of the sale. Jonathan, as the seller, bears the loss and must refund Margaret's money.

Jonathan Sells Crates of Tomatoes on Board the SS Apapa