Sean of Sean's Shrimp House Was Enjoying a Cup of Cappuccino

question 24

Essay

Sean of Sean's Shrimp House was enjoying a cup of cappuccino while visiting with Ollie at Ollie's Ocean Front Bar & Grill.During the course of their conversation,Sean agreed to supply 100 pounds of shrimp per month for the next year to Ollie's restaurant at the price of $2.50 per pound.When Sean got back to his office,he sent a written confirmation of the agreement to Ollie.Six weeks after receiving the confirmation Ollie wrote back,stating that he had not agreed to the price of $2.50 per pound.Is Ollie bound to the confirmation?

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Definitions:

Freight In Account

An accounting term used to describe the costs associated with transporting goods into a business, typically included as part of inventory costs.

Merchandise Purchased

Represents the total cost of goods bought for resale during a specific accounting period.

Credit Balance

A situation where the total credits in an account exceed the total debits, commonly seen in liability, revenue, and equity accounts.

Freight Out

The cost associated with transporting goods from a company to its customers, considered a selling expense.