Mr Goode, a Neighbour of Your Parents, Offered to Sell

question 48

Multiple Choice

Mr. Goode, a neighbour of your parents, offered to sell you his house for $400,000, a bit below market value. You are definitely interested but would like to see if your employment contract will be renewed and want to check about financing. Mr. Goode says that he'll hold the offer open for you until May 1st. On these facts, which of the following is False?

• A) Mr. Goode will be bound to hold it open if you pay him and he accepts some money to hold it open until that date.
• B) Mr. Goode will be bound to hold it open if you offer and he accepts your offer to wash his car every Saturday morning for two months in exchange for his promise to hold it open.
• C) Mr. Goode will be bound to hold it open until that date if his promise to do so was written and under seal.
• D) Mr. Goode's promise to hold it open is sufficient; the offer is safe until May 1st, when it will expire.
• E) If you buy an option to buy a house, you still don't have to buy the house.

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Definitions:

Cash Discount

An incentive offered by sellers to encourage buyers to pay earlier, resulting in a reduction in the amount due.

Captive Finance Company

A finance company that is wholly owned by a parent company, primarily for the purpose of providing financing to the customers of the parent company.

Credit Function

The role of extending credit to consumers or businesses, enabling the purchase of goods or services before payment.

Controlled Disbursements

A cash management technique where companies strategically issue payments to regulate their cash outflows and maximize the available cash.