Asked by Sierra Motsinger on Mar 10, 2024
Verified
Each party to a contract assumes the risk that the value of the object of the deal will change in the future.
Assumes The Risk
A legal principle stating that a person voluntarily exposes themselves to known hazards, accepting any incurred harm or loss.
Future
In a general context, 'future' refers to the time or a period of time following the moment of speaking or writing; in finance, it often pertains to a contract to buy or sell an asset at a later date.
- Discern the effect of value and quality mistakes on contract enforceability.
Verified Answer
IP
Itzel PerezMar 10, 2024
Final Answer :
True
Explanation :
In a contract, each party assumes the risk that the value of the contract's subject matter may change over time, which is a fundamental principle of contract law known as "commercial risk."
Learning Objectives
- Discern the effect of value and quality mistakes on contract enforceability.