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NeCede's

Maxim 5.5.15

In the price of buying and selling, it is naturally allowed to the contracting parties to overreach each other.

Source: 1 Story, Cont. 606; Weisman, 13g Difficulty 3/5 — Intermediate

Explanation

(English-origin maxim.) In arm's-length bargaining over price, each party is naturally permitted to seek the best deal — the law does not police hard bargaining absent fraud or duress.

Where this applies

  • A car dealer offers a trade-in price of $3,000 for a car worth $5,000 and sells the same car for $8,000 — both buyer and seller were trying to get the best deal, and that is lawful bargaining.
  • A homeowner negotiates aggressively to buy the lot next door at well below market value, and the seller holds out for top dollar — both are within their rights.
  • A wholesale buyer haggles a farmer down to the lowest possible price for a crop, and the farmer tries to get every penny he can — hard bargaining without fraud is perfectly legal.

Legal domains

Cite this maxim

NeCede Max. 5.5.15 — In the price of buying and selling, it is naturally allowed to the contracting parties to overreach each other. — 1 Story, Cont. 606; Weisman, 13g

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