Simon Owns 10 000 Shares in ABC Inc

question 40

True/False

Simon owns 10 000 shares in ABC Inc. He wanted to sell half of them in order to raise $20 000 in cash. He therefore wrote separate letters to Bronwyn and Gwyneth on June 1st. In each case he said, "I will sell 5000 shares in ABC Inc to you for $20 000. Please respond by any reasonable means within one week." Bronwyn replied on June 3rd with a letter that said: "I accept your offer." Simon received that letter on June 5th. On June 6th, he received a fax from Gwyneth that said, "I accept your offer." Simon then informed Gwyneth by telephone that he had already sold the shares to Bronwyn. In that situation, there is no contract between Simon and Gwyneth.

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Definitions:

Cognitive Limitations

Refers to the constraints on human information processing, including limited memory and attention capacity.

Perfectly Rational

Refers to a theoretical condition in decision-making where individuals make decisions by fully optimizing and considering all available information and potential outcomes.

Ambiguous Situations

Scenarios that lack clarity and can be interpreted in multiple ways.

Satisficing

A decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal solution.