Question

George offers to sell Penelope a ring that George found in his yard. He and Penelope look at the ring and decide that they are not sure what it is, probably just a shiny stone. Penelope pays George $10 for the ring. The ring turns out to be a diamond worth much more than $10. George wants the ring back, and Penelope refuses. What is the most likely result

Answer 1

Answer: The ring will remain with Penelope because the parties contracted on the assumption that they did not know the value of the ring.

Step-by-step explanation:

Even though the ring is worth more than $10 which was paid for the ring by Penelope, the most likely outcome is that the ring will remain with Penelope because the parties contracted on the assumption that they did not know the value of the ring.

In this case, the contract has already been executed and a payment has been made. When the contract was made,no information about the ring was known. Therefore, Penelope will remain with the ring.