Allen Enters into a Contract with Joe to Sell His

question 7

Multiple Choice

Allen enters into a contract with Joe to sell his car. However by mistake, he undervalues his car. Though the actual value of the car is $6000, he sells it to Joe for $3000. During the purchase, Joe is aware of the actual value but does not communicate this fact to Allen. Which of the following is likely to be true in such a scenario?

• A)Allen is entitled to compensation through a court of law.
• B)Allen is entitled to cancel the contract because he was not aware of the actual value.
• C)Joe is entitled to keep the car because the contract is valid.
• D)Joe must pay the difference to Allen in order to validate the purchase.

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