Asked by Angel Cartagena on May 28, 2024
Verified
As discussed in the case in the text,Hicks v.Sparks,a person who is harmed by a mutual mistake cannot avoid that contract if he is considered to bear the risk of mistake.Which of the following statements is true?
A) A buyer is not considered to have accepted the risk when he accepts property "as is."
B) Courts have the power to allocate risk of a mistake on the adversely affected person whenever it is reasonable under the circumstances to do so.
C) The adversely affected party does not bear the risk of mistake when he contracts with conscious awareness that he has limited information about a fact.
D) A person who is harmed by the mistake can avoid the contract on the basis of mutual mistake even if he is considered to bear the risk of mistake.
Mutual Mistake
A situation where all parties involved in a contract are mistaken about a fundamental fact at the time of contract formation, potentially making the contract voidable.
Risk Of Mistake
A legal principle concerning the risks associated with the potential for misunderstanding or miscommunication in the terms of a contract or agreement.
Accepted The Risk
The concept in law where an individual acknowledges and willingly exposes themselves to a known danger or risk.
- Acquire knowledge of the legal justifications for revoking a contract due to inaccuracies, fraudulent activities, or misstatements.
- Examine the significance and utilization of legal theories in distinctive contractual conflicts and case law interpretations.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
B
Explanation :
The person who is harmed by the mistake cannot avoid the contract if he is considered to bear the risk of mistake.Courts have the power to allocate the risk of a mistake to the adversely affected person whenever it is reasonable under the circumstances to do so.One situation in which an adversely affected person would bear the risk of mistake is when he has expressly contracted to do so.For example,if Buyer contracted to accept property "as is," he may be considered to have accepted the risk that his assumption about the quality of the property may be erroneous.The adversely affected party also bears the risk of mistake when he contracts with conscious awareness that he is ignorant or has limited information about a fact.
Learning Objectives
- Acquire knowledge of the legal justifications for revoking a contract due to inaccuracies, fraudulent activities, or misstatements.
- Examine the significance and utilization of legal theories in distinctive contractual conflicts and case law interpretations.