On May 6,Robbie entered into a signed contract with Ed,whereby Robbie agreed to sell Ed a painting with a fair market value of $350,000 for $130,000.Robbie believed the painting was worth only $130,000.Unknown to either party,the painting was destroyed by fire on May 4.If Ed sues Robbie for breach of contract,Robbie's best defense is:
A)risk of loss had passed to Ed.
B)lack of adequate consideration.
C)mutual mistake.
D)unconscionability.

Question

Quizplus · Accepted Answer

This is a case of mutual mistake where both parties can rescind the contract as neither of them verified for the actual existence of the painting before signing the contract.

On May 6,Robbie Entered into a Signed Contract with Ed,whereby