Author Question: Allen enters into a contract with Joe to sell his car. However by mistake, he undervalues his car. ... (Read 88 times)

shofmannx20 · **on:** Jun 24, 2018

Allen enters into a contract with Joe to sell his car. However by mistake, he undervalues his car. Though the actual value of the car is 6000, he sells it to Joe for 3000. During the purchase, Joe is aware of the actual value but does not communicate this fact to Allen. Which of the following is likely to be true in such a scenario?
A) Allen is entitled to compensation through a court of law.
B) Allen is entitled to cancel the contract because he was not aware of the actual value.
C) Joe is entitled to keep the car because the contract is valid.
D) Joe must pay the difference to Allen in order to validate the purchase.

Question 2

A promise to pay a debt must be in writing if:
A) the debt is for more than 500.
B) the debt is now due and payable.
C)the promise is to pay the debt of another.
D) the debt owed is the promisor's.