Final answer:
When signing a contract in which the value of the object being purchased is specified, the parties assume the risk that the value of the object will change or prove to be different from what they originally thought. This is mitigated by sellers offering warranties or service contracts.
Step-by-step explanation:
When signing a contract in which the value of the object being purchased is specified, the parties assume the risk that the value of the object will change or prove to be different from what they originally thought. This concept is related to business and is often seen in transactions involving large purchases such as cars, houses, or appliances. To mitigate this risk, sellers may offer warranties or service contracts.