Next, suppose a case in which the offer and acceptance do not
differ, and in which both parties have used the same words in the
same sense. Suppose that A agreed to buy, and B agreed to sell,
"these barrels of mackerel," and that the barrels in question
turn out to contain salt. There is mutual mistake as to the
contents of the barrels, and no fraud on either side. I suppose
the contract would be void. /2/
It is commonly said that the failure of the contract in such a
case is due to the fact of a difference in kind between the
actual subject-matter and that to which the intention of the
parties was directed. It is perhaps more instructive to say that
the terms of the supposed contract, although seemingly
consistent, were contradictory, in matters that went to the root
of the bargain. For, by one of the essential terms, the
subject-matter of the agreement was the contents of certain
barrels, and nothing else, and, by another equally important, it
was mackerel, and nothing else; [311] while, as a matter of fact,
it could not be both, because the contents of the barrels were
salt. As neither term could be left out without forcing on the
parties a contract which they did not make, it follows that A
cannot be required to accept, nor B to deliver either these
barrels of salt, or other barrels of mackerel; and without
omitting one term, the promise is meaningless.
If there had been fraud on the seller's part, or if he had known
what the barrels really contained, the buyer might have had a
right to insist on delivery of the inferior article. Fraud would
perhaps have made the contract valid at his option. Because, when
a man qualifies sensible words with others which he knows, on
secret grounds, are insensible when so applied, he may fairly be
taken to authorize his promisee to insist on the possible part of
his promise being performed, if the promisee is willing to forego
the rest.
Take one more illustration like the last case. A policy of
insurance is issued on a certain building described in the policy
as a machine-shop. In fact the building is not a machine-shop,
but an organ factory, which is a greater risk. The contract is
void, not because of any misrepresentation, but, as before,
because two of its essential terms are repugnant, and their union
is insensible. /1/
Of course the principle of repugnancy last explained might be
stretched to apply to any inconsistency between the different
terms of a contract. It might be said, for instance, that if a
piece of gold is sold as eighteen-carat gold, and it is in fact
not so pure, or if a cow is sold as yielding an average of twelve
quarts of milk a day, and in fact she yields only six quarts,
there is no logical difference, [312] according to the
explanation which has just been offered, between those cases and
that of the barrel of salt sold for mackerel. Yet those bargains
would not be void. At the most, they would only be voidable, if
the buyer chose to throw them up.
Public-domain text, read in full here on John Shaqi.
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