New York Law (NYLE) Practice Exam

Will Peter succeed in voiding the sales contract after realizing the navy bag is black?

1. A. No, because the mistake recognized existed only after the sale occurred.

2. B. No, because the mistake was not material to the sale.

3. C. Yes, because the mistake existed at the time the contract was made.

4. D. Yes, because Peter's realization of the mistake was timely.

The correct answer is: C. Yes, because the mistake existed at the time the contract was made.

The reason Peter would succeed in voiding the sales contract is that the mistake existed at the time the contract was made. In contract law, a mutual mistake occurs when both parties have a mistaken belief about a material fact that is central to the agreement. If Peter believed that the navy bag was navy at the time of purchase, but it was actually black, this misrepresentation of the color, which is a material aspect of the sale, could potentially justify voiding the contract. For a mistake to warrant rescinding a contract, it generally must be about a fact that is material to the agreement. In this scenario, if the color of the bag was significant to Peter’s decision to make the purchase, then the mistake regarding the bag's color directly affects the contractual agreement. Therefore, recognizing that this mistake was present at the time of contracting makes it a valid basis for Peter to void the contract based on the principles of mutual mistake.