Assume an Offeree Mails a Rejection to the Offeror on November

question 77

Multiple Choice

Assume an offeree mails a rejection to the offeror on November 1. This rejection arrives at the offeror's place of business on November 5. In the meantime, on November 4, the offeree sends the offeror an acceptance that arrives November 6. Which of the following statements correctly describes the situation?

• A) There was no contract.
• B) There was a contract since the acceptance was mailed prior to the time the rejection was received.
• C) There was no contract because the rejection was mailed first.
• D) There was no contract because the acceptance was mailed more than three days subsequent to the rejection.

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Definitions:

Other Comprehensive Income

Represents items of income and expense that are not realized through the profit and loss account, including gains or losses from foreign currency translation and changes in the fair value of investments.

Debt Investments

Investments made by purchasing bonds or other debt instruments, offering returns in the form of regular interest payments.

IFRS And ASPE

International Financial Reporting Standards and Accounting Standards for Private Enterprises are guidelines for financial accounting.

Equity Method

The equity method is an accounting technique used by a company to record its investment in another company when it has significant influence but not full control, typically between 20% and 50% ownership.