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42. Which of the following best describes the legal relationship between the parties at this point?
In a recent month, because of several snowstorms, the services needed by the landlord exceeded 100 hours. The landlord has reminded the company that services in excess of 100 hours are to be paid at the discounted rate, but the company insists that it be paid at the contract rate of $150 per hour.
A company agreed to provide regular facilities-maintenance services for a landlord's apartment buildings for $150 per hour. The parties also orally agreed that if the services required in any given month exceeded 100 hours, the landlord would pay the company a discounted hourly rate of $125 per hour for those extra services. When the parties put their agreement in writing, however, neither party noticed that the contract did not include the discounted-rate provision.
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A is incorrect. A contract may not be formed if the terms are too indefinite. Here, however, there was a mistakenly omitted term, not an indefinite term. Therefore, the contract is not void ab initio.
C is incorrect. Because both parties mistakenly omitted the term regarding the discounted rate for services exceeding 100 hours, the landlord is entitled to reformation reflecting the agreed-upon discount for the extra hours.
D is incorrect. The parties did not share a mutual mistake—a belief that is not in accord with the facts. Rather, both parties mistakenly believed that the writing reflected the entirety of their oral agreement. In this situation, the writing may be reformed to express the actual agreement of the parties.