A Met B While Shopping, and in the Course of Conversation

question 21

True/False

A met B while shopping, and in the course of conversation, mentioned that he had a motorcycle for sale. B was familiar with A's motorcycle and offered to purchase it for $500. A accepted the offer, and A and B walked to A's home to get the motorcycle. When they reached A's house, they were told by A's father that the motorcycle had been stolen earlier in the day and was subsequently found by the police in a badly damaged and burned condition in a local stone quarry. B may avoid the contract on the basis that the parties had made a mistake as to the existence of the subject matter.

---

Definitions:

Price

The amount of money required to purchase a good or service.

Elastic

Describing a situation where the quantity demanded or supplied of a product changes significantly in response to a change in price.

Total Revenue

The total amount of money a firm receives by selling goods or services, calculated as the quantity sold multiplied by the price.

Sellers

Individuals or entities that offer goods or services for sale to consumers or other businesses.