Under Article 2, When Two Parties Intend to Form a Contract

question 48

Multiple Choice

Under Article 2, when two parties intend to form a contract but the acceptance includes conflicting terms: ______.

• A) there is no contract.
• B) the acceptance is viewed entirely as a counteroffer.
• C) there is a contract based on the terms of the offer and acceptance that are consistent, but the conflicting terms in the acceptance cancel out.
• D) there is a contract, and the conflicting term in the offer is part of the contract.

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Definitions:

Salvage Value

The estimated residual value of an asset after its useful life has ended and it can no longer be used for productive purposes.

Net Cash Inflows

The difference between all cash receipts and all cash payments within a particular period, reflecting the net increase in cash available.

Straight-Line

A depreciation method that allocates an equal amount of the depreciable cost of an asset to each accounting period of its useful life.

Annual Rate of Return

The percentage of profit or loss made from an investment in a year, taking into account both capital gains and interest or dividends received.