Examine the parties legal positions


Problem: Barrack owned a painting which he believed to be a reproduction of a work by Joe, a famous painter. He sold the painting to Donald, who also believed it to be a reproduction. Donald consulted an expert and discovered that the painting was in fact the genuine original work by Joe. Donald intended to sell it to George, an art dealer. Unfortunately, Donald's secretary wrongly wrote the price as Ksh 8,000, rather than its true value of Ksh 800,000. George sent a cheque of Ksh 8,000 and took possession of the painting. Donald has sent back the cheque insisting that George either pays the full purchase price of KSh 800,000 or returns the painting. George has refused to return the painting. Barrack later discovered that the painting was the original by Joe and wishes to recover it.

Applying the rules governing mistake in contract, examine the parties' legal positions. You may assume any such facts as will be necessary to explain your answer, but do so without changing the basic facts as presented herein.  

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