Question
Trinity Trucking signs a contract with Olsen Oil to purchase all of the fuel for its fleet of trucks for the next year from Olsen
Trinity Trucking signs a contract with Olsen Oil to purchase all of the fuel for its fleet of trucks for the next year from Olsen at a price of $3.00 per gallon. At the time Trinity and Olsen sign the contract, the market price of gasoline was $3.25 per gallon, and Trinity had an expert report predicting that the price would rise to at least $4.25 per gallon in the upcoming six months. Instead, the price dropped to $2.00 per gallon. May Trinity rescind the contract with Olsen due to its mistaken belief about the future of the price of gasoline?
a. | No, because Trinity made a prediction error, not a factual mistake. | |
b. | No, because Olsen had no way of knowing of Trinity's mistake. | |
c. | Yes, because otherwise Olsen will make an unfair profit. | |
d. | Yes, based on a unilateral mistake. |
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