Which one of the following mistakes voids a contract?
A) Two parties contract for a shipload of coal, but unknown to both parties, at the time of the contract the ship had sunk and the coal had been lost.
B) Sally and Wacky had a serious misunderstanding about a term in the contract; the court found that the more reasonable interpretation was Sally's.
C) Two parties contracted for the sale and purchase of a painting for the price of $800. When the contract was written up, the price was incorrectly stated as $900.
D) Sam bought three gallons of paint, but found he had made a mistake; two would have been sufficient.
E) When Mr. and Mrs. Houston put their property up for sale, Sam without speaking to the Houstons or their agent about the land, offered close to the asking price because he thought it was suitable for growing wheat. After his offer was accepted, he learned it was not suitable for wheat.

Question

Quizplus · Accepted Answer

A mistake that makes a contract void is one that is fundamental to the agreement itself, such as contracting for something that no longer exists or is impossible to fulfill. In choice A, both parties were contracting for a shipload of coal that, unknown to them, had already sunk and was lost. This is a mutual mistake about the existence of the subject matter of the contract, making the contract void.

Which One of the Following Mistakes Voids a Contract