Carlos and David contract for the sale of five hundred head of Carlos's cattle for $195 per head. Unknown to either party, an unforeseen storm has struck the herd and many of the cattle have died. David is
A)entitled to recover the value of the lost cattle.
B)not required to pay due to the bilateral mistake.
C)not required to pay due to the unilateral mistake.
D)required to pay because he assumed the risk the cattle might die.

Question

Quizplus · Accepted Answer

The correct answer is B) not required to pay due to the bilateral mistake. This is because both parties were unaware of the significant fact that the cattle had died at the time of the contract, which materially affects the agreed-upon exchange. In contract law, a bilateral mistake where both parties are mistaken about a basic assumption on which the contract was made can render the contract voidable.

Carlos and David Contract for the Sale of Five Hundred