Question

Bob sells a wood pen he found in his desk to Sally for $5. Later, her learns the pen is worth $500 because it is an antique. Because Bob had "freedom to contract" Select one: a. He cannot get the pen back. b. He can get the pen back. c. He can get the difference between what he paid for the pen and what it is really worth.

Answer 1

Bob can get the difference between what he paid for the pen and what it is really worth due to his freedom to contract.

Step-by-step explanation:

b. Bob can get the difference between what he paid for the pen and what it is really worth. In this case, Bob had freedom to contract, which means he had the freedom to enter into a voluntary agreement with Sally to sell the pen for $5. However, due to the principle of equity, Bob can seek compensation for the undervalued sale since he discovered later that the pen is worth $500. Therefore, he can ask for the difference between the sale price and the actual value of $495.