I mean, that's what judicial discretion is for. Good luck convincing a judge that the seller honestly intended to sell his domain for 1000x lower than market value.
No that isn’t what judicial discretion is. In contract law judges are not permitted to unilaterally interject their understanding of a contracting party’s intent and revise the terms of a contract, try looking up the “4 corners of a contract”.
I’ll give a specific example of a buddy of mine who in 2008 (during housing bubble) used to buy foreclosed homes at auction. There was a $2-3M home foreclosed Miami Beach home on auction, he put in a bid for about $200k, then the clerk of court website crashed, he didn’t think much of it, come to find out it crashed for everyone locking in his bid, the bank moved to set aside the sale on the basis of uncontrollable 3rd party error, my friend showed up single handedly with a few cases printed up in support of his position and the court denied the banks motion and my friend received title to the house. If the bank had any remedy it was for damages against the courts system that caused the damage not against the contractual winner of the auction.
It was an auction, meaning anyone could bid, and he put a genuine bid for $200k. Just because the system crashed doesn't mean anyone actually made a representation they didn't intend to.
A more realistic example would be the wrong house getting listed for auction due to clerical error (but one still owned by the bank). I'm fairly sure that would be set aside.
Edit: sorry you were talking about my example and not the domain.
Auctions are contracts, in this case the seller (bank) agrees to accept the highest offer at the end of the expiration of the auction. So the terms are of the auction are time limited, historically the foreclosure auctions were done in person (sometimes on the courthouse steps), I’ve been at in person foreclosure auctions and the bank had a representative that ended up buying most of them (at least at the ones I attended)
Maybe I'm stretching it a bit, but the element of reasonably assuming that it was intentional seems similar. I'm sure there are some differentiating intricacies in the law though.
I’ll give a specific example of a buddy of mine who in 2008 (during housing bubble) used to buy foreclosed homes at auction. There was a $2-3M home foreclosed Miami Beach home on auction, he put in a bid for about $200k, then the clerk of court website crashed, he didn’t think much of it, come to find out it crashed for everyone locking in his bid, the bank moved to set aside the sale on the basis of uncontrollable 3rd party error, my friend showed up single handedly with a few cases printed up in support of his position and the court denied the banks motion and my friend received title to the house. If the bank had any remedy it was for damages against the courts system that caused the damage not against the contractual winner of the auction.