Herb offers to sell Ron a cow that both parties believe is newly pregnant. A few months later they both realize that the cow is not pregnant. Can either party avoid the contract?

Question

Quizplus · Accepted Answer

Both parties were under the mistaken belief that the cow was pregnant, which constitutes a mutual (or bilateral) mistake about a basic assumption on which the contract was made. This can be grounds for voiding the contract if the mistake materially affects the agreed performance.

Herb Offers to Sell Ron a Cow That Both Parties