An Offer That Has Unclear Major Terms, or Is Missing

question 454

Multiple Choice

An offer that has unclear major terms, or is missing important terms:

• A) can be the basis for an implicit, but not express, contract
• B) can be the basis for an express, but not implicit, contract
• C) cannot be the basis for a contract
• D) makes the offeror liable if not executed properly
• E) makes the offeree liable if not executed properly

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Definitions:

Fair Value

The estimated market price of an asset or liability based on current market conditions and mutually agreed-upon conditions by a buyer and a seller.

Stock Issuance Costs

Expenses incurred by a company while issuing new shares of stock, including legal, accounting, and underwriting fees.

New Shares

Additional shares issued by a company, either through public offering, private placement, or stock splits, increasing the total number of outstanding shares.

Fair Value Allocation

The process of assigning a fair market value to all assets and liabilities of a company, often conducted during the acquisition process.