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 is bound in contract and must purchase the motorcycle even though it is badly damaged.

Question

Quizplus · Accepted Answer

In contract law, a fundamental principle is that the subject matter of the contract must exist and be in the condition expected by both parties at the time of agreement. Since the motorcycle is in a significantly different condition than B would have reasonably expected, B is not bound to purchase it under these circumstances.

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