Blue Skies Travel charges Ok-Bong Lee a total of $3,500 for a trip to North Korea. After Lee pays the invoice, Blue Skies discovers that it failed to charge a special tax levied by the North Korean government on foreign travelers. Blue Skies sends an additional invoice to Lee, who refuses to pay, saying a deal is a deal. Which of the following is correct?
A) This is a mistake of fact on the part of Blue Skies. It is entitled to rectification of the contract - that is, to include the extra charge.
B) This is a mistake of law on the part of Blue Skies. The contract is binding on it.
C) This is a mutual mistake. The contract cannot be rescinded or changed.
D) This is a mistake as to interpretation of the contract. Blue Skies is entitled to damages.
E) Lee cannot take advantage of Blue Skies' unilateral mistake, and must pay the additional charge.
Correct Answer:
Verified
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