Question

Assuming a court did find there was a valid offer, if there was an action brought against the store, would Vinny's mistake of giving the newspaper the wrong price relieve the store of liability?
A. No, because it is a mutual mistake between Vinny and the newspaper, therefore any contract could be rescinded.
B. Yes, because a unilateral mistake always allows contracts to be rescinded by either party.
C. Yes, since the mistake would be obvious to a reasonable person.
D. No, because it is a unilateral mistake, and therefore whoever made the mistake cannot use it as a defense.

Answer 1

Answer:

C. Yes, since the mistake would be obvious to a reasonable person.

Explanation:

A unilateral mistake occurs when only one party is mistaken as to the subject matter or the terms contained in the contract agreement.

The general rule involving unilateral mistakes is that, if the non-mistaken party either knew or should have known of the other party's mistake, the mistake is a “palpable unilateral mistake” which makes the contract voidable by the mistaken party.

Therefore, since Vinny's mistake would have been obvious to the other party, it could make the contract voidable and relieve the store of the liability.

Answer 2

Answer:

C) Yes, since the mistake would be obvious to a reasonable person.

Explanation:

Under common law, employers are responsible for the actions of their employees, this follows the respondeat superior doctrine. This doctrine only applies to negligent acts or omissions by the employees in the course of employment.

The key issue here is if the employer directed the behavior of the employee, or if the employee's action actually caused a harm. It is really difficult for an employer to claim that they have no control over the actions of their employees. In this specific case, the store can claim that the employee's actions did't cause any harm, because it was just a simple mistake that any reasonable person could have noticed.