Asked by Claudia Piercy on May 29, 2024
Verified
Lisa agrees to sell Deb an electronic entertainment center worth $1,000 for $700 cash in order to have a rapid sale.Later,Lisa insists that she may rescind this agreement since the agreed price was 30% below fair market value.Lisa may:
A) rescind,since the consideration is inadequate.
B) rescind,since the agreement is unconscionable.
C) rescind,since the agreement is not bargained for.
D) not rescind the agreement once Deb accepts.
Unconscionable
Describing actions or conditions that are so unfair or immoral that they shock the conscience, often leading to legal invalidation.
Fair Market Value
The price that property would sell for on the open market, reflecting the amount a willing buyer would pay a willing seller when neither is under pressure to buy or sell.
- Recognize and elucidate instances in which consideration is regarded as insufficient or grossly unfair.
Verified Answer
AC
Addie ComerfordJun 01, 2024
Final Answer :
D
Explanation :
Once Deb accepts the agreement, it becomes a legally binding contract, and Lisa cannot rescind it based on the fact that the price was below fair market value. The principle of caveat emptor (buyer beware) applies, and it is up to the buyer to determine the fair value of the item before agreeing to purchase it.
Learning Objectives
- Recognize and elucidate instances in which consideration is regarded as insufficient or grossly unfair.