A met B while shopping, and in the course of conversation, mentioned that he had a motorcycle for sale. B was familiar with A's motorcycle and offered to purchase it for $500. A accepted the offer, and A and B walked to A's home to get the motorcycle. When they reached A's house, they were told by A's father that the motorcycle had been stolen earlier in the day and was subsequently found by the police in a badly damaged and burned condition in a local stone quarry. B may avoid the contract on the basis that the parties had made a mistake as to the existence of the subject matter.

Question

Quizplus · Accepted Answer

B may avoid the contract because both parties were under a mutual mistake regarding a basic assumption on which the contract was made, namely, the existence and condition of the motorcycle at the time of the agreement.

A Met B While Shopping, and in the Course of Conversation