In Which of the Following Cases Does the Legal Power

question 68

Multiple Choice

In which of the following cases does the legal power of the offeree to bind the offeror end?

• A) When the offeree accepts the offer
• B) When the offeror is declared insane before acceptance of the offer by the offeree
• C) When the subject matter of the contract is destroyed after the acceptance of the offer
• D) When the offeror accepts the counteroffer
• E) When the offeror attempts to retract the offer after its acceptance by the offeree

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Definitions:

Call Provision

A feature on a bond allowing the issuer to redeem the bond before its maturity date.

Premium Bond

A bond sold at a price higher than its face value, typically because it offers interest rates higher than the current market rates.

Discount Bond

A bond sold for less than its face value, where the difference between the purchase price and the face value represents the investor's return.