Mike Inherited Some Antiques

question 8

Multiple Choice

Mike inherited some antiques. Pat agrees to buy them. In the contract, Mike and Pat agree to value the antiques at whatever the Sotheby's representative says. If the valuation is much higher than either of them anticipated, Pat:

• A) has to buy at the price set by the Sotheby representative.
• B) has to buy, but at what Pat and Mike believe was a reasonable price.
• C) has no obligation to buy the antiques.
• D) can treat the contract as canceled.

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Definitions:

Fraudulent Misrepresentation

A false statement knowingly made to induce another party to enter into a contract, resulting in harm.

Coder

An individual who writes code or develops software by translating algorithms and technical specifications into computer language.

Mistake

An erroneous belief, at contracting, that certain facts are true. It can be invoked as grounds to invalidate the agreement.

Fraudulent Misrepresentation

Intentional false statement of fact made by one party to deceive and induce another to enter into a contract.