In 2013, Thomas DePrince, a passenger aboard a cruise ship, visited the ships jewelry boutique, operated by


In 2013, Thomas DePrince, a passenger aboard a cruise ship, visited the ship’s jewelry boutique, operated by Starboard Cruise Services, Inc. DePrince told the employees of the boutique that he was interested in purchasing a loose, 20-carat diamond. The boutique itself did not carry diamonds of that size, so the store’s manager emailed Starboard’s corporate office to inquire about the availability of such a gem. The manager, in turn, contacted a diamond broker in New York, who listed two diamonds, one with a “selling price \($235,000.”\) The employees sold the diamond to DePrince for \($235,000\) and told him that the diamond would be waiting for him when the ship docked.

There was just one problem, however: The Starboard employees had never sold a large loose diamond before and did not realize that the quoted price was per carat. In other words, the true price of the diamond was \($4.7\) million, and they had contracted to sell it for \($235,000.

After\) realizing their mistake, the employees reversed the charge and told DePrince that the sale was off. DePrince sued to enforce the contract. Starboard claimed it should be able to rescind the contract due to unilateral mistake. How should the court rule in this case?

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Dynamic Business Law

ISBN: 9781260733976

6th Edition

Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs

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