Superstores Co is looking to lease business premises from Fuller Properties Co. After lengthy and drawn out negotiations, the parties agree the rental price will be £54,000 per annum for a minimum lease of five years. Fuller's solicitors are asked to draw up the contract. Accidentally, one of their secretaries types out the purchase price as £45,000. Fuller signs the document and sends it to Superstores. They sign the document without noticing the error. A year later, Superstores encounters financial difficulties and is unable to pay the full rent. Looking for a way out of the contract, they encounter the mistake. They contact Fuller and offer them £36,000 for the second year's rent (being the recorded contract price of £45,000 set-off against the amount they overpaid the first year £9,000) . Can Fuller Properties collect the originally agreed contract price of £54,000 for the second and remaining years?
A) Yes, they can ask a court to correct the mistake and claim the outstanding amount.
B) No, a party is bound by its signature.
C) No, according to the objective test of intentions, the contract price is the price recorded in the contract.
D) No, according to the parole evidence rule, a written contract exclusively embodies the agreement. No outside evidence can be used to vary it.
Correct Answer:
Verified
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