As Discussed in the Case in the Text,Hicks V

question 87

Multiple Choice

As discussed in the case in the text,Hicks v.Sparks,a person who is harmed by a mutual mistake cannot avoid that contract if he is considered to bear the risk of mistake.Which of the following statements is true?

• A)A buyer is not considered to have accepted the risk when he accepts property "as is."
• B)Courts have the power to allocate risk of a mistake on the adversely affected person whenever it is reasonable under the circumstances to do so.
• C)The adversely affected party does not bear the risk of mistake when he contracts with conscious awareness that he has limited information about a fact.
• D)A person who is harmed by the mistake can avoid the contract on the basis of mutual mistake even if he is considered to bear the risk of mistake.

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Definitions:

Violation

The act of breaking or failing to comply with a rule, agreement, or law.

Agency Agreement

A legal contract in which one party (the agent) agrees to act on behalf of another party (the principal) in business transactions or other matters.

Terminate

To bring to an end or to conclude something such as an agreement, employment, or process.

Principal Duty

The main or most important obligation that a party has under a contract or agreement.