Question

5.Cynthia was bequeathed an oil painting by her childless aunt. Cynthia was not favorably disposedtoward the painting because it reminded her that her aunt had left her entire estate (except the painting) to the Society for the Prevention of Cruelty to Animals. When Cynthia's best friend, Beatrice, admired the painting, Cynthia offered to sell it to her for $10. Beatrice accepted, paid the $10 and took the painting. The painting was clearly an original and bore the signature, "Ad Schreyer,” but neither Cynthia nor Beatrice had ever heard of the painter. Several weeks later, Beatrice informed Cynthia that she had inquired about the artist and had learned that the painting was worth $15,000. On hearing this, Cynthia tendered $10 to Beatrice and demanded the return ofthe painting. Beatrice refused and Cynthia brought suit against Beatrice to recover the painting. (a) Judgment for whom? Explain. (b) Would your answer to (a) be the same if Beatrice had known, at the time she bought the painting, that Ad Schreyer was a famous artist and that the painting was far more valuable than Cynthia realized? Explain. (c) Would your answer to (a) be the same if Beatrice had told Cynthia that Ad Schreyer was an amateur painter when Beatrice knew that Schreyer was a famous painter? Explain

Answer 1

I have answered the question below

Please up vote for the same and thanks!!!

Do reach out in the comments for any queries

Answer:

(A) Both parties didn't know about Ad Schreyer until after transaction so Cynthia has nothing against Beatrice to recover the painting. Only a mistake of fact may allow a contract to be avoided but in this case, the mistake is a mistake of value rather than a mistake of fact that warrants contract rescission. Therefore, Cynthia cannot rescind the contract. (B) For b, this would be considered a unilateral mistake-occurs when only one part is mistaken as to a material fact. A unilateral mistake does not give the mistaken party any right to relief from the contract so Cynthia would not be able to recover the painting. (C) If the other party knows that a mistake of fact was made, the contract may not be enforceable. If Beatrice had told Cynthia that Ad Schreyer was an amateur painter when Beatrice knew that Schreyer was a famous painter then both parties should have the same meeting of the minds or consent. If Cynthia still agrees to sell the painting for $10 then it is established but if she changes her price, it would be up to Beatrice if she is willing to pay at a different cost. This would also be considered a unilateral mistake and it is enforceable since both parties knew or should have known that mistake was made