Question

While on a cruise, DePrince inquired about the price of a 20-carat diamond in the ship's gift shop. After confirming with the cruise line's corporate office, the sales person told DePrince that the price was $235,000. DePrince's traveling companions, who both happened to be gemologists, told him that the price was too good to be true: A diamond that large should cost at least $2 million. DePrince ignored their advice and purchased the diamond. Soon after the sale was completed, the cruise line realized that the $235,000 price quote was per carat, not the total price. What kind of mistake did the cruise line make? Can the cruise line void the transaction?

Answer 1

Answer:

1. It made a Unilateral mistake

2. It cannot be voided by the cruise line

Explanation:

This cruise line has made a Unilateral mistake in this scenario.

In terms of the law, this cruise line does not have the power to void the transaction on its own accord in the normal course of business. but it has the right to plea in a law court that it did this business transaction sale based on non availability of complete price quote and also that there was a unilateral mistake of facts. It will also have to make a case that the sale was caused by the buyer who tried to benefit from the mistake through misrepresentation and omissions.

The court would then decide on the case at it own discretion.