UNIT 1 MISTAKE

Tutorial Questions

1) D offers in writing to rent an apartment to P for $50,000.00 per

month. After interviewing with Ds assistant and viewing the
property, P accepted the offer. D intended that a deposit of
$25,000.00 also be made, and thought that the assistant made
this clear. P, however, was unaware of this, and thought that the
only financial obligation involved was the $50,000.00. D
repudiates the contract. P sues.
a. Type of Mistake?
b. What do you think the outcome should be? What are the
arguments both parties would make?
2) D, an electronics store, advertised a 46 flat screen television for
$10,000.00. (JAD). The real price was $100,000.00. Based on
the low advertised price, P ordered 20 televisions. When D
realized the error, they refused to go through with the
transactions. P sues.
a. Type of mistake?
b. What do you think the outcome should be? What are the
arguments both parties would make?
3) D and P enter into a contract whereby D agrees to sell P 10
cases of peanut butter. D understood the contract to be for
chunky peanut butter but P thought that he was buying creamy
peanut butter. Creamy peanut butter is generally more
expensive than chunky peanut butter. When the shipment
arrives, P refuses to pay and sues for specific performance.
a. Type of Mistake?
b. What do you think the outcome should be? What are the
arguments both parties would make?
4) P agrees to sell D a life insurance policy to insure the life of X. At
the time of the contract, unbeknownst to both parties, X had
already died. P wishes to have the contract deemed void.
a. Type of Mistake?
b. What do you think the outcome should be? What are the
arguments both parties would make?