Which of the following is necessary in order to establish that a mutual mistake involving a basic assumption about the subject matter of a contract was made quizlet?

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Which of the following must a mutual mistake involve in order for a mutual mistake?
Which of the following is true when there is a mutual mistake in a contract?
Which of the following is true of a mutual mistake quizlet?
What are the two types of mistakes that may be involved in an attempt to make a contract explain your answer?

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Owens Inc. was a business that sought revenue by buying coffee beans from producers in Latin American countries, and then packaging and
distributing the beans in the U.S. To maximize profits, Owens Inc. bought both the highly reputed Arabica beans and the cheaper Robusta
beans. Owens Inc. would often mix the Robusta with the Arabica beans, but advertise the coffee beans as pure Arabica beans. This would
allow Owens Inc. to benefit from the higher market prices of the rarer Arabica coffee. Starbucks entered into a ten-year contract with Owens
Inc. to buy their marketed Arabica beans. However, on further inspection, Starbucks discovered that Owens Inc. had been misrepresenting the
quality of their coffee beans. Consequently, Starbucks sought to terminate their contract with Owens Inc. A U.S. district court heard their case,
and the court found that their contract lacked legal assent, and that Owens Inc. was required to pay for damages, including the money
Starbucks had spent on Owens's coffee beans.

But what if the facts of the case were different? Select each set of facts below that could change the power of that court to hear the case.
Instead of Owens' diluting the quality of Arabica coffee beans, the producers that supplied Owens with coffee beans had laced the Arabica
beans with Robusta, but marketed them to Owens as pure Arabica. Owens had no knowledge that this had occurred, and Starbucks still
discovered that the Arabica beans were impure.
Starbucks had been informed by Owens that Owens had laced its marketed Arabica coffee beans with Robusta beans.
Owens intended to deceive Starbucks as well as other companies with whom it conducted business.
Rather than Owens' lacing the Arabica coffee beans with Robusta beans, the producers that supplied Owens with coffee beans had mixed
their Arabica beans with Robusta beans, and marketed them to Owen as pure Arabica. However, the court found that Owens could have
discovered that this was occurring by using reasonable care.

Hardwoods, a timber supplying company, contracted with a furniture manufacturer, Taylor Furniture. Hardwoods owned a large plot of land
where it grew Oak and Beech trees. Taylor had contracted with Hardwoods to buy 1 ton of each type of lumber grown by Hardwoods each
month at a discounted price for the next 5 years. However, during the second year of the contract, and tornado Hardwoods farmland, and
demolished its entire supply of wood. Taylor having no other supplier sued Hardwoods for breach of contract. Hardwoods argued that their
contract had been legally discharged as soon as the tornado struck because at that point it was impossible for Hardwoods to supply lumber to
Taylor. The court ruled in favor of Hardwoods.

But what if the facts of the case were different? Select each set of facts below that could change the outcome of the case.
Instead of a tornado's striking Hardwoods' land, the state in which Hardwoods operates passes a law making it illegal for any lumber
companies to cut down trees for the purposes of selling their wood. This environmental measure causes Hardwoods to go out of business.
Instead of demanding Oak and Beech wood grown specifically on Hardwoods' land, Taylor requests shipments of Oak and Beech wood
from Hardwoods, and specifies in the contract that if Hardwoods cannot supply the wood, then Hardwoods should obtain the requested wood from another lumber supplier.
Instead of a tornado's striking Hardwoods' tree farm, a wildfire burns all of Hardwoods' trees.
After the tornado, Hardwoods and Taylor Furniture agree to a novation, whereby a competing company, Oakempire, assumes the duties of
Hardwoods stated in the original contract.

Sets with similar terms

Which of the following must a mutual mistake involve in order for a mutual mistake?

For a mutual mistake to interfere with legal consent, it must involve a basic assumption about the subject matter of the contract, a material effect on the agreement, and an adverse effect on a party that did not agree to bear the risk of mistake at the time of the agreement.

Which of the following is true when there is a mutual mistake in a contract?

A mutual mistake occurs when the parties to a contract are both mistaken about the same material fact within their contract. They are at cross-purposes. There is a meeting of the minds, but the parties are mistaken. Hence the contract is voidable.

Which of the following is true of a mutual mistake quizlet?

Which of the following is true of a mutual mistake? A contract entered into based on mutual mistake can be rescinded by either party.

What are the two types of mistakes that may be involved in an attempt to make a contract explain your answer?

The two forms of mistakes of fact are mutual mistakes and unilateral mistakes. A mutual mistake occurs when both parties have an erroneous belief while a unilateral mistake only involves the misunderstanding of one party.