Kathleen sells Richard a racehorse for $1,000.Both Kathleen and Richard think that the horse is too slow to win any races.Richard then enters the horse in a race,and it wins easily.He enters it in more races,and the horse soon wins more than $1 million.Kathleen tries to rescind the contract to sell the horse,claiming that it was worth more than $1,000.A court will

Question

Quizplus · Accepted Answer

The court will enforce the contract as Kathleen sold the racehorse to Richard for $1,000, which he accepted without any fraud or misrepresentation. The fact that Kathleen and Richard both thought that the horse was too slow to win any races is an error in judgment, and it does not negate the validity of the contract. The doctrine of caveat emptor (buyer beware) applies in this case, and Richard assumed the risk when he bought the horse. The subsequent increase in the horse's value is irrelevant as the contract was valid at the time it was made.

Kathleen Sells Richard a Racehorse for $1,000