On June 1st, Maureen Sent a Letter to Joel That

question 42

Essay

On June 1st, Maureen sent a letter to Joel that offered to sell 10 000 shares in Tadpole Inc (a computer software company) for $5 each. Her letter did not require Joel to respond by any particular date. On June 3rd, Tadpole Inc publicly announced that its engineers had perfected a new technology that would revolutionize the electronic commerce industry. By June 4th, the price of a single share in the company had increased to $100. On June 6th, Joel returned from his cottage and learned of both Maureen's offer and the price of Tadpole Inc shares. He promptly sent a letter to Maureen that said, "I accept your offer. I will pay a total of $50 000 for 10 000 shares in Tadpole Inc." Maureen obviously no longer wants to sell her shares under the price that she quoted in her offer. Discuss the factors that a court would consider in deciding whether or not she and Joel had created a contract.

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Definitions:

Goods and Services

Physical items that can be purchased (goods) and intangible assistance or activities provided for consumption (services).

Trade Deficits

A situation where a country's imports of goods and services exceed its exports, resulting in a negative balance of trade.

Saving Rate

The portion of income that is not spent on consumption but is saved or invested for future use.

Gold Standard

A monetary system where a country's currency or paper money has a value directly linked to gold; countries agree to convert currency into a fixed amount of gold.