Beachcomber Coins, Inc. v. Boskett
Superior Court of New Jersey, Appellate Division
400 A.2d 78 (1979)
Beachcomber Coins, Inc. (Beachcomber) (plaintiff), a coin retailer, agreed to buy a dime from Boskett (defendant) for $500, both believing it was a rare 1916-Denver mint. After paying, Beachcomber found a buyer willing to pay $700, but that buyer's purchase was conditioned on inspection by the American Numismatic Society, which determined the coin was counterfeit. Beachcomber sued to rescind the contract for mutual mistake of fact. The trial court held for Boskett, reasoning that industry custom required a buyer to independently verify a coin's authenticity, so Beachcomber assumed the risk by failing to inspect it. Beachcomber appealed.
Whether a contract is voidable for mutual mistake of fact when enforcing it would be materially more burdensome than if the fact had been as both parties believed, unless the party seeking rescission assumed the risk of the mistake.