James orally entered into a contract to sell 100 tonnes of cotton to Bryan for a price of $1000 per ton. Both parties subsequently signed a written contract. However, the written contract mistakenly stated the price of cotton as $1100 per ton. While signing, Bryan failed to notice this mistake. Which of the following contract terms will govern in such a scenario?

Question

Quizplus · Accepted Answer

The oral agreement reflects the true intention of both parties, and the written contract contains a clerical error. Courts often allow the original oral agreement to govern if it can be proven that the written contract does not reflect the true agreement due to a mutual mistake.

James Orally Entered into a Contract to Sell 100 Tonnes