S owns an oil painting. Being in need of money, S sold the painting to B for P1, 000. After the sale it was discovered that the painting was valuable and worth P5, 000. What is the treatment of this statement?*a. S may rescind the contract on ground of lesion or inadequacy of causeb. S may rescind the contract on ground of fraudc. S may annul the contract on the ground of errord. B is entitled to the benefit of the contract because it is valid and binding
Question
S owns an oil painting. Being in need of money, S sold the painting to B for P1, 000. After the sale it was discovered that the painting was valuable and worth P5, 000. What is the treatment of this statement?*a. S may rescind the contract on ground of lesion or inadequacy of causeb. S may rescind the contract on ground of fraudc. S may annul the contract on the ground of errord. B is entitled to the benefit of the contract because it is valid and binding
Solution
The correct answer is d. B is entitled to the benefit of the contract because it is valid and binding.
Here's why:
a. S may not rescind the contract on ground of lesion or inadequacy of cause. Lesion or inadequacy of cause would imply that the value of the painting was misrepresented or not properly assessed at the time of the sale. However, the question does not provide any information to suggest that this was the case.
b. S may not rescind the contract on ground of fraud. Fraud would imply that B intentionally deceived S about the value of the painting. Again, the question does not provide any information to suggest that this was the case.
c. S may not annul the contract on the ground of error. An error would imply that there was a mistake in the contract, such as a typo in the price. The question does not provide any information to suggest that this was the case.
d. B is entitled to the benefit of the contract because it is valid and binding. This is the correct answer because the contract was validly entered into and both parties agreed to the terms. The fact that the painting was later discovered to be worth more than the sale price does not affect the validity of the contract.
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