James purchases an antique chair at a garage sale for $150.00.Later he sells it to Jacqueline for $300 and makes a nice profit.A few months later the Antiques Road Show comes to town and Jacqueline takes the chair to the show to be valued.She is advised that the chair dates as far back as 1866 and is worth approximately $5000.Which of the following is true?

Question

Quizplus · Accepted Answer

James did not make a mistake about the value of the chair because the radically different price is one of the risks expected in the contract. In contract law, the principle of caveat emptor (buyer beware) applies. It means that the buyer takes the risk of the quality, value, and condition of the item purchased. James sold the chair to Jacqueline at a price that was agreeable to both parties, and he was not under any legal obligation to disclose the true value of the chair. Therefore, he did not make a mistake, and the contract is valid.

James Purchases an Antique Chair at a Garage Sale for $150.00.Later