Question Completion:
a. List the 3 elements of an offer and describe each (in your own words).
b. Did Precious Jewelry make an offer when they placed the ad in the magazine? Did Sharon make an offer when she placed the order? Why or why not?
c. What will be the likely outcome if Sharon sues Precious Jewelry to force them to fill her order? Explain your answer.
Answer:
a. The three elements of a valid offer are Communication, Commitment, and Definite Terms. Communication of an offer should be between the offeror and the offeree and not with the general public. Commitment in an offer requires that the two parties are identified and are committed to the exchange of offer and acceptance. Definite terms means that the terms of the offer must be clear and well-understood by the involved parties.
b. Precious Jewelry did not make an offer when it placed the ad in the magazine. The ad was an invitation to offer. Sharon was the party that made the offer when she ordered for the jewelries. It was then left for Precious Jewelry to accept or reject the offer.
c. If Sharon sues Precious Jewelry to force them to fill her order, she does not have the locus standi because there is no basis for the existence of a contract between Sharon and Precious Jewelry since Sharon's offer was not accepted by Precious Jewelry and there was no consideration.
Explanation:
For a valid contract to exist between Sharon and Precious Jewelry, the five elements of a contract must be present. They include valid offer, acceptance, mutual consent (or assent), consideration, and legality (including capacity).
Answer:
B. Refunds Payable 1,000 Accounts Receivable 1000
Explanation:
Since the given transactions made on credit basis, so there is no role of cash.
Hence, no cash entry would be recorded
Moreover, the sales allowance is granted for $1,000 which reduce the account receive balance so we credited this account and the goods are damaged so we debited the refund payable account
Hence, the entry would be
Refunds Payable $1,000
Accounts Receivable $1,000
(Being the sales allowance is recorded)
The answer for this question is: Intangible resource
Intangible resource is a type of resource owned by a company that cannot be measured by number and do not have physical form.
Another example for an intangible resource is: employee's loyalty, Human Development within the company, employee's motivation, etc.
<u>Answer:</u> D. 60,000 shares at $5 per share
<u>Explanation:</u>
The company has 15,000 shares and offers to split the stock four-for-one. It means that the there will be four times the number of shares but the total value of the shares, before and after the split, would remain the same.
The total value of shares = $15,000 x 20 = $300,000
Since the stock split is 4-for-1, the number of shares would be = 15000 x 4
= 60,000 shares
Therefore the total value of shares divided by the number of shares will give us the par value of the shares:
300,000 / 60,000 = $5
Brook's Law is the statement that adding more people to a late project makes the project later.
