Brief Fact Summary.
Bert Allen Toyota, Incorporated appealed a decision that granted judgment in favor of Grasz for specific performance of a sales contract.
Synopsis of Rule of Law.
A contract can be rescinded on the basis of unilateral mistake if: (1) there was no meeting of the minds, (2) no gross negligence by the rescinding party, (3) no intervening rights, (4) the contracting parties can be put in the status quo, (5) the rescinding party did not induce the mistake via negligence.
Grasz agreed to purchase a2003 Toyota Tacoma from Bert Allen Toyota (Bert) for $16,971, less a $1,000 rebate plus taxes and fees. A computer mistake caused the sales manager to calculate a final price of $15,017.50, when the final price should have been $17,017.50. When the manager discovered the error, he ordered Grasz to pay the additional $2,000. Grasz refused to pay and the trial court granted specific performance of the $15,017.50 under the contract.
Whether a contract can be rescinded on the basis of unilateral mistake?
Yes. Bert cannot rescind the contract based on unilateral mistake because Bert induced the mistake via negligence. The judgment of the trial court is affirmed.
The elements of a valid contract are: (1) two or more contracting parties, (2) consideration, (3) an agreement that is sufficiently definite, (4) parties with legal capacity to make a contract, (5) mutual assent, and (6) no legal prohibition precluding contract formation.View Full Point of Law
Bert proved negligent by failing to check the computer’s calculations when he was aware that the computer had previously made computational errors. Bert was also aware of the price of the vehicle.