Raymond Agrees to Sell Damian His Entire Potato Harvest in Return

question 4

True/False

Raymond agrees to sell Damian his entire potato harvest in return for £1000 upon their return from a holiday. Unbeknownst to either party, Raymond's potato farm has been devastated by disease and there are only a handful of healthy potatoes left at the time the contract is made. Damian believes he is nevertheless bound to pay the full price for the miserable harvest. Is this true?

---

Definitions:

Accounting Equation

The foundational principle of accounting that states assets equal liabilities plus equity.

Accounts Payable

Liabilities representing amounts owed by a company to creditors for purchases of goods and services on credit.

Limited Liability Company (LLC)

A business form consisting of one or more persons or entities filing an operating agreement with a state to conduct business with limited liability to the owners, yet treated as a partnership for tax purposes.

Separate Legal

Refers to a legal entity, such as a corporation, that is legally distinct from its owners.