Flora enters into a contract with Global Shipping, Ltd., to insure and ship a painting from France 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) award allow the parties to rescind the contract.
B) damages to Flora for the mistake.
C) award damages to Global for the mistake.
D) enforce the contract as is.

Question

Quizplus · Accepted Answer

A court would likely allow the parties to rescind the contract due to the mistake, as it was a mutual mistake regarding a material fact (the contract price), which significantly affects the agreed terms.

Flora Enters into a Contract with Global Shipping, Ltd