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.

Question

Quizplus · Accepted Answer

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.

Lisa Agrees to Sell Deb an Electronic Entertainment Center Worth