In: Accounting
5.a. Distinguish an offer from a promise.
A) An offer is a provisional promise made by one party subject to a condition or containing a demand to the other party, the recipient of the offer. The offer does not imply a legal obligation while the promise does.
B) An offer is a provisional promise made by one party subject to a condition or containing a demand to the other party, the recipient of the offer. An offer involves a legal obligation while a promise not necessarily
C) An offer is a provisional promise made by one party subject to a condition or containing a request to the other party, the recipient of the offer. The offer and the promise are simple invitations to do business.
D) An offer is a provisional promise made by one party subject to a condition or containing a demand to the other party, the recipient of the offer. The offer and the promise necessarily imply a legal obligation.
E) An offer is a provisional promise made by one party subject to a condition or containing a demand to the other party, the recipient of the offer. The offer and the promise do not imply any legal obligation.
5.b. What is the rule of exclusion of extrinsic evidence?
A) According to this rule, one must take into account the intention of the parties and the circumstances surrounding the formation of the contract by trying to maximize, but without ignoring the importance of the words.
B) All of the above.
C) According to this rule, one must take into account the intention of the parties and the circumstances surrounding the formation of the contract by trying to minimize, but without ignoring the importance of the words.
D) None of the above.
E) According to this rule, a stipulation which was the subject of a previous agreement between the parties, but which does not appear in the contract in its final form, cannot be added to the contract or contradict it.
F) According to this rule, a stipulation which was the subject of a previous agreement between the parties, but which does not appear in the contract in its final form, may not be added to the contract and contradict it.
G) According to this rule, a stipulation which was the subject of a previous agreement between the parties, and which appears in the contract in its final form, cannot be added to the contract or contradict it.
5.c. A sole proprietorship has:
A) a patrimony which merges with that of its owner.
B) claims and debts specific to it.
C) its own legal personality.
D) a heritage distinct from its owner.
E) a heritage separate from its owner and its own debts.
5.d. A negligent agent who exercises his mandate free of charge is liable to prosecution for damages:
A) true, the negligent agent who exercises his mandate free of charge is totally and entirely responsible for his own negligence.
B) false, as the mandate is exercised free of charge, the principal will be responsible for the negligence of his agent.
C) true, the negligent agent is liable to prosecution for damages but his liability will be limited since he exercises his mandate free of charge
D) false, the negligent agent cannot be liable to prosecution for damages because he does not performs only a representative role by acting on behalf of the principal.
E) false, the negligent agent cannot be liable for damages if he has entrusted the mandate to a third party.
Q5.a. Distinguish an offer from a promise.
Ans-B) An offer is a provisional promise made by one party subject to a condition or containing a demand to the other party, the recipient of the offer. An offer involves a legal obligation while a promise not necessarily.
the reason behind this is because the first line clarifies us that the offer here is exchange of something i.e. it necessarily contains a consideration, hence legally enforceable. and for the promise it may or may not contain consideration.so not necessarily enforceable.
5.b. What is the rule of exclusion of extrinsic evidence?
Ans-E) According to this rule, a stipulation which was the subject of a previous agreement between the parties, but which does not appear in the contract in its final form, cannot be added to the contract or contradict it.
the next option is almost similar to this one but the law itself cannot use the ambigious language like 'may'
there are definitely an exception to this rule but still this option is more appropriate.
5.c. A sole proprietorship has:
Ans-C) its own legal personality.
the word patrimony and heritage means it is like a legacy, but it is not in every case.
if i want to start my own new proprietorship, i can and that is not a legacy for me, but every proprietorship has its own legal status. distinct from its owner.
5.d. A negligent agent who exercises his mandate free of charge is liable to prosecution for damages:
Ans-A) true, the negligent agent who exercises his mandate free of charge is totally and entirely responsible for his own negligence.
it is the resposibility of the agent to perform mandate with due care. but he has been grossly negligent in performing his duty, the fact that he has not taken fee does not relieve him from the liabilty.