contract-law damages remedies
Is overselling breach of contract or mistake?
<p>Where does overselling stand in terms of contract law?</p>

<p>Say Bob runs a record store. One day, Pete pops in and asks for a specific rare CD. Bob does not have it but his friend Rob does, and Bob is super sure he can persuade Rob to sell the CD to him. So Bob goes ahead and makes contract with Pete, promising to deliver the CD a couple days later.</p>

<p>Later same day Bob phones up Rob only to find out that he does not have the CD anymore (as a variant, under no circumstances he would part with it). So Bob cannot deliver the CD to Pete.</p>

<p>Is this a breach of contract? Is this a mistake? Is the contract voidable? What remedy is available to Pete? Can he sue for damages?</p>

<p>It is a breach. It is a mistake. The contract is not voidable based on the mistake, because it is a unilateral mistake and the breaching party bore the risk of that mistake. </p>

<p>Pete can sue for damages: either restitution (a refund) or expectancy (the market price of the CD). </p>
