A settlement made with the aid of using a minor is frequently voidable, however a minor can most effective keep away from a settlement all through his or her minority popularity and for an inexpensive time after he reaches the age of majority. After an inexpensive length of time, the settlement is deemed to be ratified and cannot be avoided.
- Facts of the case: Sean, 17, a snowboarder, signs a long-term endorsement agreement for sportswear. At age 19, he wants to void the agreement by claiming that he lacked capacity when he signed the deal at 17.
- Rule of Law: Minor's Contracts are voidable at the option of Minor.
- Analysis: Since, Minor's Contract is voidable at the option of the Minor who Signs the Contact can either honor the contract or void the contract. A minor can void a contract for lack of capacity, only when he is still under the age of majority. If a minor turn 18 i.e., After attaining Majority and hasn't done anything to void the contract, then the contract can no longer be voided.
- Here, Sean has not done anything to void the contract on attaining the age of 18. So, he at the age of 19, cannot void the agreement by claiming that he lacked capacity when he signed the agreement at 17.
- Decision: Sean Vs. Sportswear Company: In the light of the above provisions, a Court will not permit Sean to now void the agreement.
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Answer:
$27.14
Explanation:
Calculation for the price of the firm's perpetual preferred stock
Using this formula
Price of the firm perpetual preferred stock = Annual dividend / Required return
Where,
Annual dividend =$1.90
Required return=7% or 0.07
Let plug in the formula
Price of the firm perpetual preferred stock = $1.90 / 0.07
Price of the firm perpetual preferred stock=$27.14
Therefore the Price of the firm perpetual preferred stock will be $27.14
Answer:
135,000 shares
Explanation:
The stock split is the re-denomination of the shares where the number of shares increases without a corresponding increase in shareholders' equity.For instance assigning two shares for each share had earlier with two new shares priced at the price of previous one share,however in calculating the number of shares applicable to basic earnings stock split is treated retrospectively,as if it has always been part of the company's shares
Opening number of shares 60,000
add increase due to stock split(2*60,000)-60,000 60,000
new shares half-way through the year 30,000*6/12 15,000
Weighted average number of shares 135,000
The parol evidence rule has many exceptions, with possibly the most prevalent one being when <u>oral</u> evidence serves to clear up a(n) <u>ambiguous</u> part of an agreement.
More about the parol evidence rule:
The parol evidence rule is a principle of Anglo-American common law that controls the types of evidence that parties to a contract dispute may provide in an effort to ascertain the precise terms of the contract.
The parol evidence rule also prohibits parties who have reduced their agreement to a finalized written instrument from adding further evidence later on as proof of a different intent regarding the contract terms, such as the content of oral exchanges from earlier in the negotiation process.
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Answer:
d. Cash will be debited for $210,000.
Explanation:
The journal entry for the issue of shares is shown below:
Cash A/c Dr $210,000
To common stock (5,000 shares × $5) = $25,000
To Paid-in Capital in Excess of Par Value $185,000
(Being issue of shares recorded)
So, the cash account is debited whereas the common stock and paid-in capital should be credited
And, the remaining balance should be transferred to the Paid-in Capital in Excess of Par Value
