Mr Buyer, the Plaintiff in the Action, Is Attempting to Enforce

question 63

Multiple Choice

Mr. Buyer, the plaintiff in the action, is attempting to enforce a contract in which the defendant, Mr. Seller agreed to sell to Buyer his property, Blackacre, for $100,000. Which of the following, by itself, would be sufficient to allow Mr. Seller to get out of the contract?

• A) The $100,000 was not enough, so was not fair.
• B) At the time of the contract, unknown to Mr. Buyer, Mr. Seller did not understand the quality and nature of this act because of mental incapacity.
• C) Although there was a letter from Mr. Seller referring to its essential terms, the contract itself was not in writing.
• D) Although both parties agreed to this, there had not actually been any money paid on the contract, not even a deposit or a down payment.
• E) The parties clearly stated that they did not want the agreement to be legally binding.

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Definitions:

First-Mover Advantage

In game theory, the benefit obtained by the party that moves first in a sequential game. A situation that occurs in a sequential game if the player who gets to move first has an advantage in terms of final outcomes over the player(s) who move subsequently.

Simultaneous Game

A strategic interaction (game) between two or more parties (players) in which every player moves (makes a decision) at the same time.

Collusive Oligopoly

A market condition where a small number of firms illegally agree to set prices or output levels to maximize collective profits.

Noncollusive Oligopoly

A market structure where a few firms dominate but do not explicitly coordinate their pricing and output decisions, leading to competitive but interdependent market outcomes.