A ______________ Exists If Both Parties Know the Object of the Contract

question 3

Multiple Choice

A ______________ exists if both parties know the object of the contract but are mistaken as to its value.

• A)Unilateral mistake.
• B)Unilateral mistake of value.
• C)Mutual mistake of a material fact.
• D)Mutual mistake of a value.
• E)Mutual mistake of identity.

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Definitions:

Risk Of Loss

The potential for an investment, asset, or transaction to result in a financial loss rather than a gain.

F.O.B. Ocean City

Free on Board Ocean City, a shipping term indicating that the seller is responsible for goods and their cost of transport until they are loaded aboard a vessel at Ocean City.

Destination Contract

A type of contract specifying that the seller is responsible for the goods until they are delivered to a specific destination or address as indicated in the contract.

Shipment Contract

A legal agreement where the seller is obligated to send the goods to a specific destination, with the risk of loss passing to the buyer upon delivery to the carrier.