Asked by
Jeremy Del Rosso
on Nov 10, 2024
Verified
Gomer paid the seller of a car with a worthless cheque. He then sold the car to an innocent person who paid him good consideration. Gomer took the money and left the country. The original seller found out who had the car and wanted it back. Who is entitled to the car if the court holds that the contract between the original seller and Gomer is voidable?
A) Original seller
B) Gomer
C) Innocent purchaser
D) The innocent purchaser, but he must pay damages to the original seller
E) The original seller, but he must pay compensation to the innocent party
Voidable
A term describing a contract or transaction that remains valid until one party takes action to void it, often due to elements like fraud or misrepresentation.
Worthless Cheque
A cheque that cannot be processed because the account it is drawn on does not have sufficient funds.
Innocent Purchaser
An individual who buys property without knowledge of any existing claims, liens, or encumbrances against it.
- Identify the distinctions between void and voidable agreements.
- Understand the obligations and legal exposures of parties involved in a breach of contract situation.
Verified Answer
ZB
Learning Objectives
- Identify the distinctions between void and voidable agreements.
- Understand the obligations and legal exposures of parties involved in a breach of contract situation.