Solved

A Agrees to Buy 1000 Shares in a Telephone Company

Question 8

Multiple Choice

A agrees to buy 1000 shares in a telephone company from B for $3.00 a share.A believes that the value of the shares in the company is going to go up to $15.00 in a day or two.However,B believes that the value of the shares is going to go down to $1.50 and wants to get as much money as he can.Unknown to either A or B,at the time of the agreement,the value of the company and thus the shares has dropped below $1.50,to $0.75.A now wishes to get out of the agreement.In this case,


A) A will succeed because A was mistaken about the value of the shares in the company and has been adversely affected.
B) A will succeed because there was a mistake as to the subject matter of the contract and A has been adversely affected.
C) A will not succeed because A was adversely affected and took a risk about the company and the value of its shares.
D) A will succeed because a change in circumstances of the company does not affect the agreement.
E) A will not succeed because both A and B took a risk about the value of the shares in the company.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents