Where Two Parties Contract for the Purchase and Sale of an Ordinary

question 25

Multiple Choice

Where two parties contract for the purchase and sale of an ordinary item,such as a desk,that unknown to both parties is a rare and valuable example of that item,this is a:

• A) unilateral mistake.
• B) mutual mistake of law.
• C) mistake of value, but not a mistake of fact.
• D) case of fraud by concealment.
• E) case of implied-in-fact mistake.

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Definitions:

Actual Price Level

The current index of prices for goods and services in an economy, reflecting the purchasing power of money at a specific point in time.

Long Run

A period in economics in which all factors of production and costs are variable, allowing full adjustment to changes.

Real Wages

Wages adjusted for inflation, representing the purchasing power of income earned through work.

Resource Prices

Resource prices refer to the cost associated with the inputs used in the production of goods and services, including raw materials, labor, and capital.