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Question
An auction house puts a painting up for sale, which it believed to be and represented as Pablo Picasso's "Acrobat and Young Harlequin." An anonymous Japanese buyer, also believing it to be Picasso's original work, bought it for $50 million. Sometime later the buyer had the painting appraised for insurance purposes, and the appraiser discovered that it was a forgery worth only a few thousand dollars. Can the buyer rescind the contract? If so, on what basis?
A. The buyer cannot rescind because his mistake was negligent; he should have investigated the authenticity of the work before bidding on it.
B. The buyer can rescind on the basis of unilateral mistake.
C. The buyer cannot rescind because the auction house did not intentionally mislead him about the authenticity of the painting.
D. The buyer can rescind on the basis of mutual mistake.
Answer
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