Carlos and David contract for the sale of five hundred head of Carlos's cattle for $95 per head. Unknown to either party, an unforeseen storm has struck the herd and many of the cattle have died. David is
A) entitled to recover the value of the lost cattle.
B) not required to pay due to the bilateral mistake.
C) not required to pay due to the unilateral mistake.
D) required to pay because he assumed the risk the cattle might die.

Question

Carlos and David contract for the sale of five hundred head of Carlos's cattle for $95 per head. Unknown to either party, an unforeseen storm has struck the herd and many of the cattle have died. David is
A) ​entitled to recover the value of the lost cattle.
B) ​not required to pay due to the bilateral mistake.
C) ​not required to pay due to the unilateral mistake.
D) ​required to pay because he assumed the risk the cattle might die.

Quizplus · Accepted Answer

The contract is voidable due to a bilateral mistake, as both parties were unaware of the storm that affected the cattle, making the contract based on a fundamental misunderstanding.

Carlos and David Contract for the Sale of Five Hundred