R offers to buy a used bicycle from O. He gives O a name card which falsely indicates that he is a famous philanthropist. Based on the repute of that man, O agrees to accept a cheque for the bicycle, but it bounces when O attempts to cash it. The bicycle is later found in the possession of a bona fide purchaser A. What is the likely outcome should O sue A for the bicycle?

Question

Quizplus · Accepted Answer

DIn this scenario, O's mistake was regarding the attributes of R (believing R to be a famous philanthropist based on the name card) rather than R's actual identity. The contract between O and R was not void for mistake of identity because O intended to sell the bicycle to the person present (R), despite being misled about R's attributes. Therefore, since the bicycle was sold to a bona fide purchaser (A) who presumably bought the bicycle in good faith without knowledge of the deceit, O would likely be unsuccessful in a lawsuit to recover the bicycle from A.

R Offers to Buy a Used Bicycle from O