Monarch Marking System Co. v. Reed's Photo Mart, Inc.
Supreme Court of Texas
485 S.W.2d 905 (1972)
A representative of Reed's Photo Mart (defendant) prepared a purchase order listing a quantity of one label type as '4MM,' intending to order 4,000 labels, but the term meant 1 million by trade custom and usage; Monarch Marking System Company (plaintiff) accordingly printed and shipped 4 million labels. Reed's refused the shipment, and Monarch sued for the price. A jury found the trade meaning of '4MM' was 1 million and declined to find Monarch knew Reed's had made a mistake; the trial court awarded Monarch the full cost of the labels, but the court of civil appeals reversed, finding the trial judge should have submitted to the jury the question of whether Monarch should have known of Reed's mistake.
Whether, when a unilateral mistake occurs in the making of a contract, the non-mistaken party must be capable of being returned to the status quo in order for rescission to be granted.