Gary owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Helen enters into a contract to buy "Gary's ATV" for $750. Gary believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this situation
A) Gary is entitled to $750 for the $500 ATV.
B) Helen is entitled to the $1,000 ATV for $750.
C) Helen must buy both ATVs for $1,500.
D) the contract is not enforceable.

Question

Quizplus · Accepted Answer

The contract is not enforceable due to a mutual mistake. Both parties had different beliefs about which ATV was being sold, and therefore there was no meeting of the minds. As a result, the contract cannot be enforced.

Gary Owns Two All-Terrain Vehicles (ATVs), Worth $1,000 and $500