Cody signs and returns a letter from Deb, referring to Deb's Double-D Ranch and its price. When Cody attempts to complete the deal, Deb refuses, claiming that they have no contract. Cody claims they do. What standard determines whether these parties have a contract?
What will be an ideal response?
The objective theory of contracts is the standard to determine whether the parties have a contract. Under this standard, if a reasonable person would have thought that the offeree (Cody) accepted a legitimate offer by the offeror (Deb) when the offeree signed and returned the letter, a contract was made, and both parties are bound. This assessment is determined in part by what was said in the letter (did the letter constitute a valid offer?) and what was said in response (did the response constitute a valid acceptance?). Under any circumstances, the issue is not whether either party subjectively believed that they did, or did not, have a contract.
You might also like to view...
Jocelyn works at a retail store in Los Angeles. She addresses her Indian manager, Anika, by her first name. Jocelyn's colleague advises against addressing Anika by her name, as she might find it disrespectful. The colleague is most likely right if Anika's cultural beliefs align with a
A. collectivist nature. B. low uncertainty avoidance. C. long-term orientation. D. high power distance. E. short-term orientation.
Explain the accounting for notes and bonds
What is a limitation to the employee survey approach that many organizations used to assess diversity and inclusion?
a. Most of the questions only have face value validity b. There are not enough questions use to get a true baseline c. Most people don’t understand the construct of ‘diversity’ in order to answer the question correctly d. They typically measure the observable differences but not the non-observable ones
Smith and Sons Inc. has a target capital structure that calls for 40 percent debt, 10 percent preferred stock, and 50 percent common equity. The firm's current after-tax cost of debt is 6 percent, and it can sell as much debt as it wishes at this rate. The firm expects to retain $15,000 in earnings over the next year. Where will a break in the WACC curve occur??
A. ?$12,500 B. ?$15,000 C. ?$30,000 D. ?$25,000 E. ?$42,500