Essay on Contract and Legally Binding Agreement

870 Words Oct 25th, 2013 4 Pages

Tameeka Brown
Hartly and The Auto Dealer
Southern New Hampshire University
October 20, 2013

Hartly & The Auto Dealer

What do you think about this situation? Should parties to a sales contract be able to rescind a contract because of mutual mistake of fact? Why or why not? Did either party act unethically in this case? Why or why not? What application does the UCC have here? Finally, in the overall context of contract law, are there any winners or losers when a contract is rescinded based on mutual mistake of fact? Why or why not?

In my studies of the case, I read about Sherwood verses Walker in the case of Rose the cow. In brief Walker was selling Rose to
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According to description listed above the contract can be accepted in whole or in part at the customer discretion. Hartly, has legal justification to completely deny the sale of the vehicle. Thus completely walk away from the dealership with no sale. This can be done by the breach in the contract. Because this is a sale, the customer would have three days to rescind his purchase by law even if the contract was enforceable. Hartly could also opt to purchase another vehicle as well.
Certainly you could view both parties as losers and/or winners depending on how they decide to handle the dilemma. The customer didn’t get the car he wanted, but a sale could still be established. I believe the situation could still be a win-win. The customer still needs a vehicle. In this situation Hartly didn’t won’t the 3.9 litre vehicle, but the manufacture produces a vehicle with a 3.5 litre engine which could be valued the same as the 3.2 litre vehicle. If that’s the case then both the salesman and customer could work out an option that would probably work.


Business Law: Principles for Today's Commercial Environment. (2013). 3rd Edition
Author(s): Twomey; Jennings.

Legal Information Institute 2-601 Buyer’s Right on

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