If a seller contracts to sell a painting that he believes is a child's painting but...

If a seller contracts to sell a painting that he believes is a child's painting but it turns out to be an undiscovered Picasso, also unbeknownst to the buyer at the time of purchase, then _______.

the contract can be disavowed

the contract can be rescinded

this mutual mistake of value does not excuse the seller from the contract

the contract is void

this mutual mistake of value would excuse the seller from the contract

Solutions

Expert Solution

Answer: C. this mutual mistake of value does not excuse the seller from the contract

Explanation:

As per contract law, a contract can be avoided if there is a mistake but the mistake should be a mistake of fact. Here both seller and buyer have made a mistake about the value of the painting and not about the material fact or basic assumption on which the contract is made. As it is a mistake of value rather than a mistake of fact, the contract cannot be avoided and it does not excuse the seller from the contract. Hence the answer is option C and all other options are wrong.

keosha answered 1 year ago

Next > < Previous

Related Solutions

On January 2, 2020, Seller sends Buyer a letter offering to sell an Andy Warhol painting...

On January 2, 2020, Seller sends Buyer a letter offering to sell an Andy Warhol painting (described in the letter) for $ 500,000. According to the letter, the seller must receive buyer’s acceptance no later than January 10, 2020. On January 6th, buyer (who wants the Warhol painting for his personal collection) decides to accept the offer and prepares a letter which states, "I accept your January 2, 2020 offer to sell the rare postage stamp (as described in the...

Perot's business is booming. He believes he can now sell three times as many shirts and...

Perot's business is booming. He believes he can now sell three times as many shirts and can get a 35% discount in purchase price by wielding his new power. He suggests ordering 3,000 shirts every other month. Do you agree with him? What numbers would you show him to support your answer. If he promises to pay you one-half of any savings you can create, how much money would you make? Suppose you know that the annual backorder cost is...

A seller agrees to sell his house for $459,000. His listing agreement indicates he will pay...

A seller agrees to sell his house for $459,000. His listing agreement indicates he will pay a 5% commission to his broker. He also expects to pay 3% of the purchase price towards closing costs. What is the net proceed the seller can expect at closing? Show your math

David donated a painting to the Leigh Yawkey Woodson Art Museum. He bought the painting 20...

David donated a painting to the Leigh Yawkey Woodson Art Museum. He bought the painting 20 years ago while on a European vacation for $6,000. David had the painting appraised by the owner of Nature's Beauty art store in Eagle River, a qualified art appraiser, who estimated its value to be $11,000. David believed the painting was worth more than $11,000, so he had it appraised by an art dealer in New York. That dealer, also a qualified art appraiser,...

David donated a painting to the Leigh Yawkey Woodson Art Museum. He bought the painting 20...

Commercial painting company purchased 50 cans of specialty paint. Seller has 100 cans for sale in...

Commercial painting company purchased 50 cans of specialty paint. Seller has 100 cans for sale in his store. Painter cannot pick up the paint for 2 days but has paid in full. What protection should Painter insist on? That is, what term should be included in the contract for sale that would benefit Painter if the seller’s store blows up before pickup? a. Contract should provide a warranty for the quality of the paint. b. Contract should provide Buyer can...

Michael will sell his bike because he will move and he has decided to sell it...

Michael will sell his bike because he will move and he has decided to sell it to the first person who offers at least 200 $. Suppose that each price offer given for Michael's bike is independent and exponentially distributed RVs(random variable) with mean $ 100 each. a) Michael sold his bike on the Kth offer. Find PMF(probability mass function) and mean of K b) Let the amount of offer which is sold by Michael be X $. Find PDF(Probability...

Contracts legally ind the buyer and seller! What key items are included in an effective contract?...

Contracts legally ind the buyer and seller! What key items are included in an effective contract? Share and describe one example of pricing methods used in writing contracts. Share an example of a specific project bid contract in which this type of pricing would be most effective and why?

Consider a seller who wants to sell a single unit of a good and a group...

Consider a seller who wants to sell a single unit of a good and a group of firms interested in buying the good. The seller decides to run a sealed-bid, second-price auction. Your firm intends to bid in the auction and had a private value of c for the good being sold, but is unsure of the number of other firms bidding. There will be either two or three additional firms bidding in the auction, each with an independent private...

Cohen contracts to sell his house and lot to Windsor for $100,000. The terms of the...

Cohen contracts to sell his house and lot to Windsor for $100,000. The terms of the contract call for Windsor to pay 10 percent of the purchase price as a down payment. The terms further stipulate that if the buyer breaches the contract, Cohen will retain the deposit as liquidated damages. Windsor pays the deposit, but because her expected financing of the $90,000 balance falls through, she breaches the contract. Two weeks later, Cohen sells the house and lot to...

Subjects

Question

If a seller contracts to sell a painting that he believes is a​ child's painting but...

Solutions

Expert Solution

Related Solutions

If a seller contracts to sell a painting that he believes is a child's painting but...