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X offers to sell a painting to Z which X knows is the copy of a well-known master piece. Z thinking that the painting is original decides to buy it at a very high price. Is this a valid contract?
- a)Yes, price is not the criteria for setting aside the contract
- b)No, X is guilty of fraud.
- c)Yes, Z has an erroneous belief as to the value of the painting
- d)No X is guilty of misrepresentation
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
X offers to sell a painting to Z which X knows is the copy of a well-k...
Section to which the given problem relates: Explanation to Section 20.
Decision:
This contract is valid.
Reason:
An erroneous opinion as to the value of the thing which forms the subject matter of the agreement is not treated as mistake relating to a matter of fact. Here, X will have to blame himself for ignorance of the true value of the painting.
Decision:
This contract is valid.
Reason:
An erroneous opinion as to the value of the thing which forms the subject matter of the agreement is not treated as mistake relating to a matter of fact. Here, X will have to blame himself for ignorance of the true value of the painting.
Most Upvoted Answer
X offers to sell a painting to Z which X knows is the copy of a well-k...
Explanation:
Erroneous belief as to the value of the painting:
In this scenario, X offers to sell a painting to Z which X knows is the copy of a well-known masterpiece. Z, thinking that the painting is original, decides to buy it at a very high price. In this case, the contract between X and Z is valid because Z has an erroneous belief as to the value of the painting.
Misrepresentation:
If X had intentionally provided false information about the painting to Z, then it would have been considered as misrepresentation. Misrepresentation occurs when one party to a contract makes a false statement that induces the other party to enter into the contract.
Fraud:
If X had intentionally provided false information about the painting to Z with the intention of deceiving Z, then it would have been considered as fraud. Fraud occurs when one party to a contract intentionally deceives the other party in order to induce them to enter into the contract.
Price as a criteria for setting aside the contract:
The price of the painting is not a criteria for setting aside the contract in this scenario since the contract is valid due to Z's erroneous belief about the value of the painting.
Conclusion:
In this scenario, the contract between X and Z is valid since Z had an erroneous belief as to the value of the painting. X is not guilty of fraud or misrepresentation in this case.
Erroneous belief as to the value of the painting:
In this scenario, X offers to sell a painting to Z which X knows is the copy of a well-known masterpiece. Z, thinking that the painting is original, decides to buy it at a very high price. In this case, the contract between X and Z is valid because Z has an erroneous belief as to the value of the painting.
Misrepresentation:
If X had intentionally provided false information about the painting to Z, then it would have been considered as misrepresentation. Misrepresentation occurs when one party to a contract makes a false statement that induces the other party to enter into the contract.
Fraud:
If X had intentionally provided false information about the painting to Z with the intention of deceiving Z, then it would have been considered as fraud. Fraud occurs when one party to a contract intentionally deceives the other party in order to induce them to enter into the contract.
Price as a criteria for setting aside the contract:
The price of the painting is not a criteria for setting aside the contract in this scenario since the contract is valid due to Z's erroneous belief about the value of the painting.
Conclusion:
In this scenario, the contract between X and Z is valid since Z had an erroneous belief as to the value of the painting. X is not guilty of fraud or misrepresentation in this case.
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Community Answer
X offers to sell a painting to Z which X knows is the copy of a well-k...
It is valid because it is z fault to belive it a orignal one hence contract is valid
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X offers to sell a painting to Z which X knows is the copy of a well-known master piece. Z thinking that the painting is original decides to buy it at a very high price. Is this a valid contract?a)Yes, price is not the criteria for setting aside the contractb)No, X is guilty of fraud.c)Yes, Z has an erroneous belief as to the value of the paintingd)No X is guilty of misrepresentationCorrect answer is option 'C'. Can you explain this answer?
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X offers to sell a painting to Z which X knows is the copy of a well-known master piece. Z thinking that the painting is original decides to buy it at a very high price. Is this a valid contract?a)Yes, price is not the criteria for setting aside the contractb)No, X is guilty of fraud.c)Yes, Z has an erroneous belief as to the value of the paintingd)No X is guilty of misrepresentationCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about X offers to sell a painting to Z which X knows is the copy of a well-known master piece. Z thinking that the painting is original decides to buy it at a very high price. Is this a valid contract?a)Yes, price is not the criteria for setting aside the contractb)No, X is guilty of fraud.c)Yes, Z has an erroneous belief as to the value of the paintingd)No X is guilty of misrepresentationCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X offers to sell a painting to Z which X knows is the copy of a well-known master piece. Z thinking that the painting is original decides to buy it at a very high price. Is this a valid contract?a)Yes, price is not the criteria for setting aside the contractb)No, X is guilty of fraud.c)Yes, Z has an erroneous belief as to the value of the paintingd)No X is guilty of misrepresentationCorrect answer is option 'C'. Can you explain this answer?.
X offers to sell a painting to Z which X knows is the copy of a well-known master piece. Z thinking that the painting is original decides to buy it at a very high price. Is this a valid contract?a)Yes, price is not the criteria for setting aside the contractb)No, X is guilty of fraud.c)Yes, Z has an erroneous belief as to the value of the paintingd)No X is guilty of misrepresentationCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about X offers to sell a painting to Z which X knows is the copy of a well-known master piece. Z thinking that the painting is original decides to buy it at a very high price. Is this a valid contract?a)Yes, price is not the criteria for setting aside the contractb)No, X is guilty of fraud.c)Yes, Z has an erroneous belief as to the value of the paintingd)No X is guilty of misrepresentationCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X offers to sell a painting to Z which X knows is the copy of a well-known master piece. Z thinking that the painting is original decides to buy it at a very high price. Is this a valid contract?a)Yes, price is not the criteria for setting aside the contractb)No, X is guilty of fraud.c)Yes, Z has an erroneous belief as to the value of the paintingd)No X is guilty of misrepresentationCorrect answer is option 'C'. Can you explain this answer?.
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X offers to sell a painting to Z which X knows is the copy of a well-known master piece. Z thinking that the painting is original decides to buy it at a very high price. Is this a valid contract?a)Yes, price is not the criteria for setting aside the contractb)No, X is guilty of fraud.c)Yes, Z has an erroneous belief as to the value of the paintingd)No X is guilty of misrepresentationCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for X offers to sell a painting to Z which X knows is the copy of a well-known master piece. Z thinking that the painting is original decides to buy it at a very high price. Is this a valid contract?a)Yes, price is not the criteria for setting aside the contractb)No, X is guilty of fraud.c)Yes, Z has an erroneous belief as to the value of the paintingd)No X is guilty of misrepresentationCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of X offers to sell a painting to Z which X knows is the copy of a well-known master piece. Z thinking that the painting is original decides to buy it at a very high price. Is this a valid contract?a)Yes, price is not the criteria for setting aside the contractb)No, X is guilty of fraud.c)Yes, Z has an erroneous belief as to the value of the paintingd)No X is guilty of misrepresentationCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice X offers to sell a painting to Z which X knows is the copy of a well-known master piece. Z thinking that the painting is original decides to buy it at a very high price. Is this a valid contract?a)Yes, price is not the criteria for setting aside the contractb)No, X is guilty of fraud.c)Yes, Z has an erroneous belief as to the value of the paintingd)No X is guilty of misrepresentationCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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