Business Law and the Legal Environment 7th Edition by Jeffrey Beatty,Susan Samuelson

Exercise 11

ETHICS Sophia negotiated a contract with Pete under which she would buy his company for $10 million plus the amount of the company's outstanding debt (approximately $1 million). But when Pete sent a draft of the contract, it stated that the purchase price would be $10 million less the company's debt. What is Sophia's ethical obligation to Pete? Should she tell him about the mistake? What Life Principles would you apply in this situation?