Reed owned a small photography store and purchased his price label products from Monarch. Over a period of years, Reed ordered no more than 4000 labels at time form Monarch. While preparing a new order form for labels, Reed was interrupted by a customer and wrote “4MM” on the order form instead of “4M.” In the Industry, 4M means 4000 labels, while 4MM means 4 million labels. Reed sent a the mistaken order to Monarch. Despite the course of past dealings and the fact that the maximum order that Monarch had ever received from a single customer was 1 million labels, Monarch proceeded to produce and deliver 4 million labels to Reed. Reed refused delivery and defended on the basis of mistake.Case QuestionsWho prevails and why?Is this a unilateral or mutual mistake?/ What’s the difference?
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