Question

In: Finance

Able writes to Baker: “I will mow your lawn for $20.” If Baker accepts, is this...

  1. Able writes to Baker: “I will mow your lawn for $20.” If Baker accepts, is this an express or implied contract?
  2. Able telephones Baker: “I will mow your lawn for $20.” Is this an express or implied contract?
  3. Carr staples this poster to a utility pole: “$50 reward for the return of my dog, Argon.” Describe this in contractual terms regarding explicitness, mutuality, enforceability, and degree of completion.

Solutions

Expert Solution

1. Able writes to Baker: “I will mow your lawn for $20.” If Baker accepts, is this an express or implied contract?

This is an express contract, as the offer was made in writing to Baker, and Baker too presumably accepted it orally or in writing. Since words were employed, it is an express contract.

2. Able telephones Baker: “I will mow your lawn for $20.” Is this an express or implied contract?

There is no contract here. Able has only made an offer to Baker. An offer must be accepted to give rise to a contract.

3. Carr staples this poster to a utility pole: “$50 reward for the return of my dog, Argon.” Describe this in contractual terms regarding explicitness, mutuality, enforceability, and degree of completion.

An offer for a reward is an unilateral contract. From that point of view, it does not become enforceable until a member of the public accepts by performing the contract. Unless it is performed, it remains an executory contract.

Also, since this offer of reward is unilateral, the element of mutuality is absent as of now.


Related Solutions

Your younger brother is supposed to mow the lawn using a push mower. He reasons from...
Your younger brother is supposed to mow the lawn using a push mower. He reasons from Newton's third Law that the mower will push back with the same force he exerts on the mower; therefore nothing will move and attempting to mow the lawn is pointless. What is wrong with his reasoning?
Pretend you live next to Dominick, who likes to mow the lawn at 2 am (it’s...
Pretend you live next to Dominick, who likes to mow the lawn at 2 am (it’s good for the grass) … and your bedroom faces his yard. In this example what might be the externality? What is a private solution you could propose to Dominick to reduce the impact of 2 am lawn mowing?
Able, Baker, and Charlie are the only three stocks in an index.
Problem 5-9 Price-Weighted Divisor (LO4, CFA2)Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $55, $312, and $92, respectively. If Able undergoes a 3-for-4 reverse stock split, what is the new divisor?(Do not round intermediate calculations. Round your answer to 5 decimal places.)Divisor=?
At the end of February, after the second month of operations of Able Baker Charlie Company,...
At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he’s collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It...
At the end of February, after the second month of operations of Able Baker Charlie Company,...
At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he’s collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It...
On January 1, 2005 Able Company purchased all of the stock of Baker Company. On January...
On January 1, 2005 Able Company purchased all of the stock of Baker Company. On January 1, 2010, Able purchased a piece of equipment for $50,000. This equipment is expected to last 8 years with a 2000 salvage. On January 1, 2011 Able sold the equipment to Baker for $50,000. Baker believes the asset has 7 years of life remaining and a $1,000 salvage. On January 1, 2013 Baker sold the equipment to Cat Company for $30,000. REQUIRED: A) PREPARE...
1)   On January 1, 2005 Able Company purchased all of the stock of Baker Company. On...
1)   On January 1, 2005 Able Company purchased all of the stock of Baker Company. On January 1, 2010, Able purchased a piece of equipment for $50,000. This equipment is expected to last 8 years with a 2000 salvage. On January 1, 2011 Able sold the equipment to Baker for $50,000. Baker believes the asset has 7 years of life remaining and a $1,000 salvage. On January 1, 2013 Baker sold the equipment to Cat Company for $30,000.   Make all...
The program should be able to do the following: In Java accepts one command line parameter....
The program should be able to do the following: In Java accepts one command line parameter. The parameter specifies the path to a text file containing the integers to be sorted. The structure of the file is as follows: There will be multiple lines in the file (number of lines unknown). Each line will contain multiple integers, separated by a single whitespace. reads the integers from the text file in part a into an array of integers. sort the integers...
BACKGROUND Apply audit risk and materiality concepts to address the following circumstances regarding Able & Baker...
BACKGROUND Apply audit risk and materiality concepts to address the following circumstances regarding Able & Baker LLP’s audits of the financial statements of Foster Engineering, Inc. 1. Able & Baker LLP auditors are beginning their audit of Foster’s 2017 financial statements. Because of changes in the market and increased competition, Foster changed the terms of its sales at the beginning of 2017. Previously, Foster’s customers had to pay for maintenance of the Foster products at the time such maintenance was...
Charles Maxwell is starting a cheesecake bakery, Able Baker Charlie Company, to produce and sell different...
Charles Maxwell is starting a cheesecake bakery, Able Baker Charlie Company, to produce and sell different flavored cheesecakes to restaurants and the general public. He has just begun his study of accounting, and is a bit confused about the many types of reports he has read about and how they will help him run his business. He asks you to help him clarify what the differences between managerial accounting and financial accounting are. He’s also wondering how to set up...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT