Prior Posts – Mistake
Who bears the risk of mistake?
still don’t understand what triggers the allocation of risk in situations where the parties have not expressly allocated the risk. If I purchase a bike from someone on Craig’s list (who of course can’t prove "good title"), do I assume the risk that it is a stolen bike?
Another issue that I have trouble with is the notion that a party who knowingly proceeds with a transaction about which he has limited knowledge bears the risk of mistake. The average consumer has limited knowledge about almost everything. However, if I research the product and believe myself to be sufficiently informed (even if it turns out the Consumer Reports is not entirely accurate), do I bear the risk of mistake when my new appliance doesn’t have a feature that I was led to believe it would have?
—-Good questions. One of the warranties in the sale of goods is a warranty of title (2-312) so that solves your Craig’s list case. Who bears the risk is an equitable judgment so there are no hard and fast rules. Conscious ignorance deprives one of the right of recission. Are either of your consumers consciously ignorant? Is the Consumer reports reader?