Fra enters into a contract with Global Shipping Ltd. to insure and ship a painting from Holland to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would
A)allow the parties to rescind the contract.
B)award damages to Fra for the mistake.
C)award damages to Global for the mistake.
D)enforce the contract as is.

Question

Quizplus · Accepted Answer

A court would most likely allow the parties to rescind the contract due to the mutual mistake in the calculation of the contract price, which is a fundamental error affecting the agreement's basis.

Fra Enters into a Contract with Global Shipping Ltd