Derek and Abyan Were Discussing Business Over Lunch When They

question 10

Multiple Choice

Derek and Abyan were discussing business over lunch when they agreed on the sale of a five-acre parcel of land.Since neither of them had any paper with them,Derek wrote the following on a napkin: "Abyan agrees to purchase from Derek a 5-acre parcel located at the local address of 123 105th Street,St.Joseph,Minnesota,U.S.A.for the price of $4,500 per acre.Transfer of title,payment,and possession to take place on May 1,2008." Abyan signed the napkin.On May 1,2008,Derek was ready to close the deal and transfer title but Abyan refused to pay the purchase price.If Derek sues Abyan for the price of the land,the most likely result will be:

• A)Abyan will win because the writing is not sufficient under the statute of frauds.
• B)Derek will win because the writing is sufficient under the statute of frauds.
• C)Abyan will win because Derek did not sign the writing.
• D)Derek will win because the statute of frauds does not apply to this situation.

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Definitions:

Present Value

The modern-day worth of a forthcoming sum of money or flow of cash payments, using a set rate of return for calculation.

Received

The action of being given or awarded something.

Marginal Product

the increase in output resulting from the use of one more unit of a variable input, holding all other inputs constant.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a particular input, keeping all other inputs constant.