MrBuyer, the Plaintiff in the Action, Was Attempting to Enforce

question 124

Multiple Choice

Mr.Buyer, the plaintiff in the action, was attempting to enforce a contract in which the defendant, Mr.Seller, agreed to sell to the buyer his property, Blackacre, for $100 000.Which of the following, by itself, would be sufficient to allow Mr.Seller to get out of the contract?

• A)At the time of the contract, unknown to Mr.Buyer, Mr.Seller did not understand the quality and nature of this act because of mental incapacity.
• B)The $100 000 was not enough (i.e., not fair).
• C)Although both parties agreed to this, no money had actually been paid on the contract, not even a deposit or a down payment.
• D)Mr.Buyer referred to essential terms in a letter sent to Mr.Seller.
• E)There was only a verbal agreement between Mr.Seller and Mr.Buyer.

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Definitions:

Price Leadership

A situation where one company (the price leader) sets the price of goods or services in the market, and other companies follow suit, often seen in oligopolistic markets.

Nash Equilibrium

An idea in strategic game theory in which none of the participants can gain by altering their approach if all other players maintain their current strategies.

Solar Water Heaters

Devices that convert sunlight into heat to warm water for residential and commercial uses, promoting energy efficiency.

Nonprice Competition

A strategy where businesses compete on factors other than price, such as quality, service, or brand image.