Rich and Archie sign an agreement in which Archie agrees to deliver ten cases of champagne in 5 days.The parties negotiated and meant to say in the written agreement,delivery in 50 days.If the evidence is clear that the two parties intended to agree to 50 days,the courts will probably apply the remedy of:
A) reformation.
B) rescission.
C) restitution.
D) reliance.

Question

Quizplus · Accepted Answer

Reformation is the remedy that allows the court to change the terms of the contract to reflect the parties' true intentions when there was a mistake or a mutual misunderstanding. In this case, the parties intended to agree on 50 days, but the written agreement mistakenly said 5 days. Therefore, reformation would be the appropriate remedy to correct the mistake and enforce the agreement as the parties intended. Rescission, restitution, and reliance are not applicable because there is no indication that the parties want to cancel the contract, return any benefits received, or claim damages for any reliance on a mistaken belief.

Rich and Archie Sign an Agreement in Which Archie Agrees