Ravi, an Art Collector, Had Been Made a Standing Offer

question 11

True/False

Ravi, an art collector, had been made a standing offer by a gallery to purchase one of his paintings for $150,000. At shows and luncheons of the art community he had previously rejected the entreaties, knowing the painting to be worth at least twice as much. On the latest occasion of a luncheon at which Ravi was to deliver an art commentary to the guests, the gallery made its offer once more. To himself, Ravi considered the offer and concluded he could use the charitable tax relief that such a sale at a loss would generate. In the course of his speech, he acknowledged and accepted the offer. Two days later, Ravi's lawyer advised him that the purchasing gallery was NOT a charitable foundation, and no tax deduction for such a "donation" could be expected. Ravi then refused to sell the painting to the gallery. On the strength of the verbal agreement of purchase and sale made in the presence of witnesses, the gallery sued Ravi for breach of contract, and for a decree of specific performance to compel Ravi to sell it the painting. The verbal agreement is unenforceable.

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Definitions:

Deindividuation

A psychological state in which individuals lose their sense of self-awareness and personal responsibility in group settings, often leading to atypical behavior.

Diffusion of Responsibility

A social psychology phenomenon where individuals are less likely to take action or feel a sense of responsibility in the presence of a large group.

Collective Violence

Acts of violence committed by groups of individuals, often with a shared social or political objective.

Collective Behavior

Actions or reactions of a group of people in situations where conventional norms and laws are perceived as less applicable, often spontaneously arising.