Question

Big Equipment Company sold a tractor-scraper to Ace Paving for $125,000. Ace made a down payment of $25,000 and agreed to pay the balance to Big Equipment in monthly installments at 4% interest. In typing up the contract, some of the digits in the vehicle identification number were inadvertently transposed. Ace has stopped making its monthly payments and Big Equipment wants to sue Ace, but it must first put the correct VIN in the contract. The remedy courts use to correct contract errors like this is _______________.a. Reformationb. Rescissionc. Restitutiond. Specific performance

Answer 1

Answer:

a. Reformation

Explanation:

In the given instance, it is clearly observed that the Vehicle Identification Number is not correctly written in the contract, and that happened due to typing errors, and was not intentional.

In these cases the courts order to reform the contract, and then the reformed contract shall reflect the intentions of both the parties as what they intend.

In the given case also, reformation will take place as the error is not due to intentionally, fraud with the other party. Thus correct option is:

a. Reformation