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 was to sell Ed a painting having 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 had been 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:

Reality Testing

The process of objectively evaluating the truth of a belief or perception to distinguish between what is real and what may be a product of fantasy or bias.

Political Behavior

Activities within an organization that are aimed at improving individual or group status and power, often involving tactical influence, alliances, or manipulation.

Competence

The ability of an individual or organization to effectively perform or carry out a specific task or role.

Destructive Competition

A form of competition where businesses engage in practices that significantly harm one another's ability to operate, often leading to negative outcomes for the market or industry.