What Was the Court's Decision in Lucy V

question 5

Multiple Choice

What was the court's decision in Lucy v. Zehmer?

• A) The claim made by Lucy was inconsistent with his attempt to testify in great detail as to what was said and what was done.
• B) The writing signed by the defendants did not constitute a binding contract of sale between the parties
• C) At no time prior to the execution of the contract had Zehmer indicated to Lucy by word or act that he was not in earnest about selling the farm.
• D) The $5 offered by Lucy to Zehmer to seal the bargain for selling the plot for $50,000 was inadequate.
• E) The mental assent of the parties is not requisite for the formation of a contract.

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Definitions:

Put Option

A financial deal that provides the holder the privilege, yet not the compulsion, to offload a specified quantity of a basic asset at a fixed rate within an established timeframe.

Underlying Asset

The financial instrument (such as stocks, bonds, commodities) upon which derivatives and other financial instruments are based.

Troy Ounces

A measurement unit traditionally utilized for the weight of precious metals, where one troy ounce equals about 31.1035 grams.

Hedged

A financial strategy employed to reduce the risk of adverse price movements in an asset by taking an offsetting position in a related security.