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Supposing Josh Hartly is interested in purchasing a new car as well as visits his local auto dealer. In the course of his discussions, he tells the salesperson that he needs the 3.2 litter V-6 engine, and not the 3.9 litter for the reason that he has concerns regarding the fuel economy of the 3.9 litter engine. What neither Josh nor the salesperson recognised was that the manufacturer had already stopped manufacturing both the 3.2 litter and the 3.9 litter, and was arming the cars with a newly designed 3.5 litter engine.
Upon delivery Josh realises the new engine and refuses to take the car. The salesperson as well as the dealership refuse to cancel the sale and refuse to refund Josh's deposit.
What do you reflect about this situation? Should gatherings to a sales contract can rescind a contract for the reason that of mutual mistake of fact? Why or why not? Did moreover party act unethically in this case? Why or why not? What application does the UCC have here? Lastly, in the overall context of contract law are there any winners or losers when an agreement is rescinded based on mutual mistake of fact? Why or why not?
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