The plaintiff agrees to supply the defendant\'s building company with 2 tonnes o

Question

The plaintiff agrees to supply the defendant's building company with 2 tonnes of cement. During the negotiations the plaintiff agreed to supply at the price of $ 800 per tonne. The sales contract, prepared by the plaintiff, inadvertently states that the price is '$800' rather than '800 dollars per tonne'. When the plaintiff signs the contract he does not check that the price stated is per tonne. The defendant company seeks to defend a claim for payment of $ 1,600 on the grounds that the plaintiff is bound by the document signed to accept $ 800 for the cement.

Identify the nature of the mistake, and then determine if it is operative and state the consequences for the parties concerned.

Explanation / Answer

Cost of 2 Tonne cement=$1600 , Per tonne costs $800 per tonne, Now the mistake is that the statement was not read correctly due to which their was a confusion and ultimately which led to the misintrepratation of the figures. Whenever their is a legal document signed and a contract made we need to see that each and every statement written should be checked thoroughly.it was intrepreted that the whole order is for $ 800 whereas the total order was for $1600. This led to confusion and the company filed a suit against the company for $1600 stating that the agreement was at $1600 whereas actually the order was $800. The main mistake was that per tonne was not mentioned which led this to the court. Now the situation can be sorted out amicably with mutual consent or else they can lodge a complaint in the court regarding the order. This would drag this case for longer time which will result into mental presssure for both the parties.Consequnces for both the parties are not beneficial they will have to go under court rulling.

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