Question

In: Finance

Tom hired Jerry to negotiate the acquisition of a business for him. Jerry agreed and signed...

Tom hired Jerry to negotiate the acquisition of a business for him. Jerry agreed and signed a contract with no term. He then decided that he wanted to acquire the business himrself. He validly terminated the contract with Tom. He:
  
can now buy the business him-self only with Tom's permission.
  
cannot buy the business under any circumstances.

  
can now buy the business herself but He must pay Tom a referral fee.

  
can now buy the business himself.

Solutions

Expert Solution

can now buy the business himself

Base for the answer:

Such contracts are termed as perpetual contracts, and in this context, these contracts will not specify the expiration date of the contract, and for this reason, courts would assume that the overall objective of the parties to the contract would be to make the contract terminable therefore implying the right to terminate

Jerry can now buy the business because there are no further contractual obligations pending

jeff jeffy answered 2 years ago
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