Mr Buyer, the Plaintiff in the Action, Is Attempting to Enforce

question 63

Multiple Choice

Mr. Buyer, the plaintiff in the action, is attempting to enforce a contract in which the defendant, Mr. Seller agreed to sell to 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) The $100,000 was not enough, so was not fair.
• B) 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.
• C) Although there was a letter from Mr. Seller referring to its essential terms, the contract itself was not in writing.
• D) Although both parties agreed to this, there had not actually been any money paid on the contract, not even a deposit or a down payment.
• E) The parties clearly stated that they did not want the agreement to be legally binding.

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Definitions:

Operating Leases

Leases used for short-term leasing of assets, where the lessee does not assume the risk of ownership, and the asset will be returned to the lessor at the end of the lease term.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets to generate sales revenue, calculated by dividing sales revenue by the average total assets.

Operating Lease

Operating lease is a contract that allows for the use of an asset but does not convey rights of ownership of the asset.

Capital Lease

A leasing arrangement in which the lessee records the leased asset as if it was a purchase, reflecting it on their balance sheet as an asset and a corresponding liability.