The plaintiff agrees to supply the defendant\'s building company with 2 tonnes o

Question

The plaintiff agrees to supply the defendant's building company with 2 tonnes of cement. During the negotiations the plaintiff agreed to supply at the price of $ 800 per tonne. The sales contract, prepared by the plaintiff, inadvertently states that the price is '$800' rather than '800 dollars per tonne'. When the plaintiff signs the contract he does not check that the price stated is per tonne. The defendant company seeks to defend a claim for payment of $ 1,600 on the grounds that the plaintiff is bound by the document signed to accept $ 800 for the cement.

Identify the nature of the mistake, and then determine if it is operative and state the consequences for the parties concerned.

Explanation / Answer

The mistake done here while making the contract is that metric tonne was not mentioned which led to the confusion. The nature of the mistake is very high as this is a sheer negligence by the leagl dept where it has been miscalculated. The operative consequence in this case is very high as the qustion here arises of the amount. These type of cases lead to the court where its a tedious process of the court trial.

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