Jennifer Has Been Wanting to Purchase Wayne's First Edition of Her

question 12

Multiple Choice

Jennifer has been wanting to purchase Wayne's first edition of her favorite book for a few years.Wayne has been reluctant to sell it.One evening he said to Jennifer,"Okay,I'll sell the book for $750." Jennifer replied,"Great.I accept." The agreement was not reduced to writing,but Wayne and Jennifer did shake hands.Two days later,Jennifer sent Wayne a letter outlining the terms of the agreement,and stating that she would deliver $750 cash according to the agreement before the end of the week.The letter was signed,"Best regards,Jennifer." Later,Jennifer had second thoughts - $750 was quite an amount - and refused to go through with the purchase.Nothing had been exchanged at this point.What can Wayne do?

• A)He cannot enforce the contract against Jennifer because he did not sign the letter.
• B)He cannot enforce the contract against Amy because the contract was not reduced to writing whereas it was for over $500.
• C)He can enforce the contract against Jennifer because the signed letter satisfies the statute of frauds.
• D)He can enforce the contract because, as neither of them is a merchant, the statute of frauds doesn't apply.

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Definitions:

Adjusting Entries

Journal entries made in accounting records at the end of an accounting period to update account balances before preparing financial statements.

Net Income

The residual financial benefit a company experiences after expenses and taxes are subtracted from its income.

Fiscal Year

A 12-month period used for accounting and financial reporting purposes, which may or may not align with the calendar year.

Rent in Advance

Payment made for a rental property or equipment before the period it covers, usually as a security measure or requirement by the landlord.