A and B Are Negotiating a Contract by Faxes Going

question 66

Multiple Choice

A and B are negotiating a contract by faxes going back and forth between them.During their negotiations,they agree on the subject matter of the contract,the price,and the date of performance.However,both agree that once the negotiations are complete,a formal written contract will be prepared and signed.In this situation

• A)one issue is whether the decision of A and B to put the negotiations into a formal written contract is a mere expression of their desire as to the manner in which the contract transaction will proceed.
• B)one issue is whether the negotiations contain all of the essential elements of a contract.
• C)one issue is whether the decision of A and B to put the agreement that arises out of the negotiations into a formal written contract is a term of the agreement.
• D)one issue is whether the decision of A and B to put the negotiations into a formal written contract is a condition precedent to the formation of a contract.
• E)none of the above

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Definitions:

Agricultural Products

Goods derived from farming and agriculture, including food items, feed, fiber, and biofuel commodities.

Tariffs

Taxes imposed by a government on imported or occasionally exported goods, often used to protect domestic industries from foreign competition.

Agricultural Act of 2014

A comprehensive statute that governs United States federal farm programs including crop insurance, conservation programs, and nutritional assistance.

Freedom to Farm Act

U.S. legislation passed in 1996 that aimed to reduce government control over farming operations and allow farmers more freedom in their planting decisions.