Question
Thomas Prince, a passenger aboard a cruise ship, visited the ships jewelry boutique, operated by Starbright Cruise Services, Inc. Prince told the employees of the
Thomas Prince, a passenger aboard a cruise ship, visited the ships jewelry boutique, operated by Starbright Cruise Services, Inc. Prince told the employees of the boutique that he was interested in purchasing a loose, 20-carat diamond. The boutique itself did not carry diamonds of that size, so the stores manager contacted a diamond broker in New York, who listed a 20-carat diamond with a selling price $235,000. The Starbright store manager sold the diamond to Prince for $235,000 and told him that the diamond would be waiting for him when the ship docked.
There was just one problem, however: the Starbright store manager had never sold a large loose diamond before and did not realize that the quoted price was per carat. In other words, the true price of the diamond was $4.7 million, and Starbright had just contracted to sell it for $235,000. After realizing her mistake, the store manager reversed the charge and told Prince that the sale was off. Prince sued to enforce the contract. Starbright claimed it should be able to avoid the contract due to a mistake. How should the court rule in this case and why?
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