Gordon Created DogSearch, an App That Allows People to Track

question 12

Multiple Choice

Gordon created DogSearch, an app that allows people to track their dogs' locations on their smartphones via GPS.Gordon initially intended to allow people to use the app for free, but the situation potentially changed when Gordon's brother, Fred, got involved.Fred is a lawyer.He excitedly explained DogSearch prior to a meeting with one of his clients.The client immediately offered a generous price in exchange for Gordon's agreement to license the app and provide technical support for it.Fred purportedly agreed on Gordon's behalf.When Fred eventually told his brother about the offer, however, Gordon said that while he was happy to sell a license, he insisted that another party would have to provide technical support.Which of the following statements is most likely to be TRUE?

• A)The contract has been ratified by Gordon and is therefore binding.
• B)Gordon has only ratified part of the contract and has therefore accepted none of it.
• C)The contract cannot be binding because Fred had no authority to contract.
• D)Gordon will not be able to offer the app for free if he accepted the contract.
• E)The contract has been ratified only if the company agrees to find another person to do tech support.

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Definitions:

Federal Income Tax

A tax levied by the United States Internal Revenue Service on the annual earnings of individuals, corporations, trusts, and other legal entities.

Withholding Allowances

The exemptions claimed by an employee on their W-4 form to determine how much of their income is withheld for taxes.

Accounting Period

A specific time range for which financial statements are prepared, often quarterly or annually, to present the financial status and performance of a company.

Note Payable

A written agreement where one party promises to pay another party a certain amount of money, often including interest, at a future date or on demand.