Fra Enters into a Contract with Global Shipping Ltd

question 58

Multiple Choice

Fra enters into a contract with Global Shipping Ltd. to insure and ship a painting from Holland to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would

• A)allow the parties to rescind the contract.
• B)award damages to Fra for the mistake.
• C)award damages to Global for the mistake.
• D)enforce the contract as is.

---

Definitions:

Inflexible

Lacking the ability to adapt or change according to different situations, conditions, or demands; rigid in approach or structure.

Skimming Pricing

A pricing strategy where a new product is priced high initially to maximize profits from customers willing to pay more, before lowering the price over time.

Similar Goods

Similar goods are products that satisfy the same customer needs or desires and are often considered by consumers as interchangeable with each other.

Gradually Lowering

The process of slowly decreasing or reducing something over time.