Asked by Chris Davis on May 09, 2024
Verified
If the car is really worth only $500, what is the effect of this lower vehicle value on the contract between Jennifer and Timmy?
A) There is no effect, because the court does not determine if a good or bad deal was made.
B) Promissory estoppel results in the contract being voided because Timmy's promise was based on inaccurate information.
C) The contract is voided because an illusory promise was made by Jennifer based on the illusion that the car was worth more.
D) The effect of the lower vehicle value will depend upon whether the court determines if Timmy entered into a bad or good deal.
E) The court may award Timmy damages because Jennifer entered into a contract under false pretenses and cost him money.
Illusory Promise
A statement that appears to be a promise but is too vague or lacks commitment to be legally binding and enforceable as a contract.
Promissory Estoppel
A legal principle preventing a party from withdrawing a promise if the other party has reasonably relied on that promise to their detriment.
False Pretenses
The act of knowingly making untrue statements or deceiving others to obtain goods, money, or services unlawfully.
- Investigate the situations leading to a contract being judged as breached, with an emphasis on transactions involving sales, services, and debts.
Verified Answer
EE
Eleanor EmersonMay 10, 2024
Final Answer :
A
Explanation :
The court does not evaluate the fairness of the agreed-upon price in a contract; it only ensures that the contract is valid and that both parties have agreed to the terms. The value of the car being lower than what was paid does not affect the legality of the contract between Jennifer and Timmy.
Learning Objectives
- Investigate the situations leading to a contract being judged as breached, with an emphasis on transactions involving sales, services, and debts.