Lev and Drew Have Been Negotiating Verbally and in Writing

question 43

True/False

Lev and Drew have been negotiating verbally and in writing concerning the purchase by Lev of a number of items manufactured by Drew's company. Lev insists that they have only reached the stage of having an agreement in principle but Drew says they have a binding contract. If one of the terms they agreed upon verbally was that they would execute a written contract, the court will hold that a contract does exist.

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Definitions:

Cost Variance

The difference between the actual cost incurred for a particular activity or production and its standard or budgeted cost.