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SCORPION-xisa [38]
4 years ago
6

Sarah signed an agreement to rent an apartment from a landlord who also signed the agreement. During the lease negotiations, the

landlord agreed to provide Sarah with extra storage space in the basement of the apartment building but this promise was not included in the agreement. The landlord now tells Sarah that he will not provide the extra space. If the landlord admits making the promise, under the parol evidence rule (select one):
Business
1 answer:
Marta_Voda [28]4 years ago
8 0

Answer:

He is legally expected to provide the space under the overconfidence trap

Explanation:

The landlord was overconfident about his judgment abilities and was quick to make the promise to provide the extra space without thinking of a wider range of possibilities. Thereby exposing himself to a greater risk than he imagined. The parole evidence is an evidence of oral speech. Since he admitted making the promise to Sarah, he is legally expected to provide the space.

You might be interested in
Harold wants to purchase a lot next door to Sarah's home that is owned by Sarah. Herold knows Sarah will not sell the lot to him
Rama09 [41]

Answer:

Undisclosed principal

Explanation:

Am undisclosed principal in an agency relationship is one whose existence is not known to the third party. The third party believes they are making the transaction with the only agent involved in the transaction.

In this instance Sarah believed she was selling to Alice and was not aware Alice has a principal (Harold). In her mind she sold the land to Alice and no other person.

It was at the point where Harold said he no longer wanted the land that Alice told Sarah about him. At this point the contract between Harold and Alice had been terminated

5 0
3 years ago
You are interested in investing in a five-year bond that pays a 6.6 percent coupon rate with interest to be received semiannuall
NikAS [45]

Answer:

Assuming a par value of $1,000, the most i would be willing to pay for this bond is $875.85

Explanation:

The price of a bond is equivalent to the present value of all the cash flows that are likely to accrue to an investor once the bond is bought. These cash-flows are the periodic coupon payments that are to be paid semi-annually and the par value of the bond that will be paid at the end of 5 years.  

During the 5 years, there are 10 equal periodic coupon payments that will be made. Assuming a par value equal to $1,000, in each  year, the total coupon paid will be  1000*0.066 =$66. This annual payment will be split into two equal payments equal to \frac{66}{2}=33 . This stream of cash-flows is an ordinary annuity.

the required rate of return is to 9.8% per annum  which equates to 4.9% per semi annual period.

The  PV of the cash-flows = PV of the coupon payments + PV of the par value of the bond

=33*PV Annuity Factor for 10 periods at 4.9%+ $1,000* PV Interest factor with i=4.9% and n =10

= 33*\frac{[1-(1+0.049)^-^1^0]}{0.049}+ \frac{1,000}{(1+0.049)^1^0} =875.85

5 0
4 years ago
The corporate charter of Torres Corporation allows the issuance of a maximum of 4,000,000 shares of $1 par value common stock. D
Ratling [72]

Answer: 2,080,000 shares

Explanation:

The question states that 2,080,000 shares were issued at a price of $15 per share so this will be the number of shares issued.

Shares issued are those shares that were actually sold by the company from the number of Authorized shares and quite often they will be less than the number of Authorized shares allowed.

5 0
3 years ago
Dynamo Corp. produces annual cash flows of $150 and is expected to exist forever. The company is currently financed with 75 perc
pashok25 [27]

Answer:

$1,500

Explanation:

Relevant data provided

Annual cash flow = $150

Current Stock percentage = 10%

The computation of today value of Dynamo is shown below:-

Today value of Dynamo = Annual cash flow ÷ Current Stock percentage

= $150 ÷ 10%

= $150 ÷ 0.10

= $1,500

Therefore for computing the today value of Dynamo we simply divide the annual cash flow by current stock percentage.

6 0
3 years ago
An expense resulting from failing to take advantage of cash discounts when using the net method of recording purchases is called
Genrish500 [490]
Answer: Discounts Lost
8 0
4 years ago
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