On May 6,Robbie Entered into a Signed Contract with Ed,whereby

question 61

Multiple Choice

On May 6,Robbie entered into a signed contract with Ed,whereby Robbie agreed to sell Ed a painting with a fair market value of $350,000 for $130,000.Robbie believed the painting was worth only $130,000.Unknown to either party,the painting was destroyed by fire on May 4.If Ed sues Robbie for breach of contract,Robbie's best defense is:

• A)risk of loss had passed to Ed.
• B)lack of adequate consideration.
• C)mutual mistake.
• D)unconscionability.

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Definitions:

Benefit-of-the-Bargain Damages

Compensation in contract law designed to cover the difference between the value of what was promised in a contract and what was received, ensuring the injured party receives the expected economic benefit.

Statute of Frauds

A law that requires certain types of contracts to be in writing and signed to be legally enforceable.

Enforceability

The characteristic of a legal agreement or obligation that makes it legally binding and capable of being upheld or imposed in a court of law.

Reliance

The act of depending or trusting in something or someone, often involves confidence placed in a party during contractual agreements.