A Customer Requested a Price from a Carpenter on a Teak

question 12

Multiple Choice

A customer requested a price from a carpenter on a teak cabinet to be built according to the buyer's specifications. Because teak wood is difficult to obtain, the customer agreed to pay the cost of the wood plus $175 and the carpenter agreed to build it. Which of the following is correct?

• A) Although the price is somewhat unclear, the parties have entered into a contract.
• B) This is an agreement to agree, and is not binding.
• C) This agreement fails for indefiniteness.
• D) The carpenter is bound by the agreement, but not the customer.

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Definitions:

Payable

Financial obligations or amounts owed by a company to suppliers or creditors, typically due within a year.

Intermediate Calculations

Calculations performed during a complex problem-solving process that are not the final result but used to achieve the end outcome.

Final Answer

The conclusive response or solution to a question or problem.

Interest Payment

The amount paid at intervals by the borrower to the lender for the use of borrowed money, typically expressed as a percentage of the principal.