What principle allows a seller to recede from a sale if the price was less than half of the fair market value?

The correct principle that allows a seller to recede from a sale if the price was less than half of the fair market value is known as lesion. Lesion is a legal concept in Louisiana civil law that addresses situations where one party suffers a significant disadvantage in a contract, specifically when the selling price is so disproportionate to the property's value that it suggests an unfair bargain. In Louisiana, if a seller sells a property for less than half of its fair market value, they have the right to rescind the sale under the doctrine of lesion, which aims to protect parties from entering into contracts that are fundamentally unjust.

This principle safeguards sellers who may have entered into agreements under duress, lack of understanding, or other unforeseen pressures that lead them to accept an unfair price for their property. By allowing the rescission of the contract, lesion ensures that both parties engage in fair dealings and that no one is significantly harmed by the transaction conditions. The emphasis is on maintaining fairness in contractual agreements and preventing exploitation based on inequitable price disparities.