Practice Quiz

CLEP Business Law

Category - Contracts

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Will a court enforce a contract that was based on the acceptance of an offer known to have been made as a result of a mistake?
  1. Yes, otherwise anyone who wants to be excused from a contract will claim that they entered into it as a result of a mistake.
  2. No. A court will not enforce a contract that was based on the acceptance of an offer known to have been made as a result of a mistake because in the long run the mistaken party will sue to be excused from performance.
  3. Yes. There is no requirement that the formation of a contract be free of mistakes.
  4. Yes. It is the burden of the parties to a contract to fully understand the circumstances surrounding the contract into which they are entering.
  5. No. A court will not enforce a contract that was based on the acceptance of an offer known to have been made as a result of a mistake.
Explanation
Answer: E. No. A court will not enforce a contract that was based on the acceptance of a offer known to have been made as a result of a mistake. If the non-mistaken party was aware of the mistake and still entered into the contract, the court may conclude that the non-mistaken party did so in an attempt to take advantage of the mistaken party. This is against public policy.
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