COB218 Chapter 13 Test Questions and Answers All Correct

COB218 Chapter 13 Test Questions and Answers All Correct Nora enters into a contract with Oceanic Transport, Inc., to insure and ship a painting from France to the United States for a certain price. But Oceanic makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would - Answer-allow the parties to rescind the contract. Garth owns two all-terrain vehicles (ATVs), worth $1,000 and $500, re-spec-tively. Helen agrees to buy "Garth's ATV" for $750. Garth believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this situation - Answer-there is no contract. Byron agrees to sell to Charity, for $1,500, a remote parcel of land. They be-lieve the land to be worthless, but beneath it is a gold mine. Byron can - Answer-not rescind the contract. Lewis, an employee of Silos, Inc., makes a substantial mathematical error in totaling the estimated costs for a project for which AgriCo-op is seeking bids. Consequently, Silos's bid is significantly low. - Answer-if AgriCo-op knew or should have known of the mistake. Refer to Fact Pattern 13-1. Any contract with AgriCo-op that includes the mistake may be rescinded - Answer-if the error was made inadvertently and without gross negligence.