Rena contracts with Darryl to buy two horses. They agree that she will pay $2,000 for each horse. When they draw up the contract, the sales price is inadvertently changed to read $40,000 rather than $4,000. They can seek the remedy of:

a. restitution.

b. reformation.

c. recovery based on quasi-contract.

d. novation.

Question

Toby Craig

Business

19 July, 23:07

Rena contracts with Darryl to buy two horses. They agree that she will pay $2,000 for each horse. When they draw up the contract, the sales price is inadvertently changed to read $40,000 rather than $4,000. They can seek the remedy of:

a. restitution.

b. reformation.

c. recovery based on quasi-contract.

d. novation.

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Answers (1)

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Lillian · Answer 1

Option B Reformation

Explanation:

The court or the parties itself can alter the clause/s of the contract if their is a omission or mistake or misunderstanding of term and condition. The mistake here is of writing $4000 as $40000. So the result would be that the error must be corrected and if the party is not going to do that then the party to person can go to the court. The court will order reformation because each horse in the market is available at $2000 and the clause is unconscionable. So the court will order reformation of clause.