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Mutual Mistakes In Business Law Essay

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Mutual Mistakes in Contract Law
This situation raises some questions for me. Did the manufacturer notify the dealers of the fact that they were making these changes to the cars? Where the dealers told that the manufacturer was going to stop making the 3.9 liter as well as the 3.2 liter engines and planned to replace the engines with a 3.5 liter engine. If the dealer had was informed of the changes, why didn’t the salesperson know this information. Or did the salesperson know and just forgot to tell the customer. Was the information in any of the paperwork for the car?
Yes both parties in this sales contract should be able to resend the contract due to mutual mistake of facts. Mistake of facts is when both parties enter into an agreement under a mistake as to a matter of fact essential to the agreement, almost to the point where it’s a completely different agreement, making the agreement voidable. A mutual mistake occurs when the parties to a contract are both mistaken about some material fact pertaining to their contract. I’m that if the dealer knew the car they sold Josh was actually a 3.5 liter …show more content…

That I believe is not the fault of either party, but rather the manufacturer for not informing the dealer of the changes made to the car. Since both parties were ignorant to this fact, they should both be allowed to void the contract or at the very least renegotiate the terms of the agreement. Maybe they could come to an agreement on a different price for the car that offers a better engine but also worse fuel economy for Josh. It may be necessary to make a deal for an entirely different car all together, that way all the facts will be known upfront and Josh can get the fuel economy he wants at a price that both he and the dealer can be happy with. Either way Josh reserves the right to completely walk away from the agreement and not make any new deals with the dealer. The dealer can do the same with the

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