On June 1,Maureen Sent a Letter to Joel That Offered

question 76

Essay

On June 1,Maureen sent a letter to Joel that offered to sell 10 000 shares in Tadpole Inc (a computer software company)for $5 each.Her letter did not require Joel to respond by any particular date.On June 3,Tadpole Inc publicly announced that its engineers had perfected a new technology that would revolutionize the electronic commerce industry.By June 4,the price of a single share in the company had increased to $100.On June 6,Joel returned from his cottage and learned of both Maureen's offer and the price of Tadpole Inc shares.He promptly sent a letter to Maureen that said,"I accept your offer.I will pay a total of $50 000 for 10 000 shares in Tadpole Inc." Maureen obviously no longer wants to sell her shares under the price that she quoted in her offer.Discuss the factors that a court would consider in deciding whether or not she and Joel had created a contract.

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Definitions:

Gross Domestic Product

A measure of the economic output of a country, calculated as the total value of all goods and services produced within the country's borders in a specific time period.

Market Value

The current price at which an asset or service can be bought or sold, determined by supply and demand.

Intermediate Goods

Goods that are used in the production process of other goods and are not sold directly to end consumers.

Gross Domestic Product

A measure of the economic production of a country within a given time period, calculated by adding the value of all goods and services produced within that country.