In La Junta, Carlos and Alvaro Contract for the Sale

question 54

Multiple Choice

In La Junta, Carlos and Alvaro contract for the sale of five hundred head of Carlos’s cattle for $95 per head. Unknown to either party, a unforeseen storm has struck the herd and many of the cattle have died. Alvaro is

• A)entitled to recover the value of the lost cattle.
• B)not required to pay due to the bilateral mistake.
• C)not required to pay due to the unilateral mistake.
• D)required to pay because he assumed the risk the cattle might die.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

General Course

A broad educational path focusing on a wide range of subjects or skills.

Equal Dignities Rule

A legal principle stating that agents appointed to perform tasks that must be in writing, such as real estate transactions, also must have their authority granted in writing.

Mortgage

A loan secured by the collateral of specified real estate property that the borrower is obliged to pay back with a predetermined set of payments.