Ajay entered into a contract to buy a used car from a dealership for $10,000.Upon doing further research,he has now discovered the car is actually only worth $9,000.Which of the following best describes Ajay's legal position?
A) The contract is binding as Ajay was expected to take care of his own interests.
B) The contract is not binding because it is not a fair price for the car.
C) The contract is binding because both parties had equal bargaining power.
D) The contract is not binding because the dealership has committed fraud.

Question

Quizplus · Accepted Answer

The contract is binding because in contract law, parties are generally expected to do their own due diligence before entering into a contract. The principle of 'caveat emptor' (let the buyer beware) applies, meaning Ajay's discovery that the car is worth less than he agreed to pay does not invalidate the contract.

Ajay Entered into a Contract to Buy a Used Car