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Jahara Ltd

Question 31

Multiple Choice

Jahara Ltd. enters into a contract to supply glass bottles to Brine Co. for its line of baby dill pickles. Since it is a new relationship, both parties want the option to end the contract without problems, so they include a clause that allows either one of them to terminate the contract on 30 days written notice. Jahara finds that Brine Co. is too slow in paying its bills and too quick to question quality. On March 1st, Jahara Ltd. gives Brine Co. notice in writing that the contract will end on March 31st. Brine Co. insists that the 30 days notice clause means 30 working days, not 30 calendar days, and thus Jahara must supply them until April 1. Jahara refuses. Brine Co. loses two weeks of production when its supply of bottles runs out and sues Jahara for breach of contract. In this situation,


A) This is a mistake of law, specifically the law of contract.
B) This is a mistake of fact.
C) This is an example of a mistake of utmost good faith.
D) This is a case of innocent misrepresentation.
E) This is a mistake about the existence of the subject-matter of the contract.

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