Jon Was Developing a Computer Program for Use by Owners

question 16

Multiple Choice

Jon was developing a computer program for use by owners of track clubs, which would aid them in keeping records of the members, their runs, times, injuries, etc.Eager to finish the program, Jon, in Edmonton, called his friend Sam, in Calgary, and offered him $2000 to help: five hours per working day, five days per week, for five weeks.Sam said that he would have to think about it.Jon told Sam that he was eager to get going, but that he would hold the offer open until Friday, February 6, at noon.Which of the following is true? (Read each separately.)

• A)If Jon revokes his offer before Friday at noon, Sam could sue him for breach of contract because Jon had promised to hold the offer open.
• B)If the court held that acceptance by mail was reasonable in the circumstances and if Sam accepts by mail, the place of contract is Edmonton.
• C)If Jon goes ahead and hires Betsy from Edmonton at noon on February 3, it would be too late for Sam to accept.
• D)If Sam wants to ensure that the offer will remain open until noon on February 6, he should give Jon some consideration (that is, purchase an option agreement).
• E)If Sam accepts by phone within the time specified in the offer, the place of contract would be Calgary.

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Definitions:

Paid-in Capital

Funds received from investors during the issuance of stock, exceeding the par or stated value of the shares, also known as "contributed capital."

Legal Capital

The portion of a company's equity that cannot legally be distributed to shareholders, often equivalent to the par value of the shares.

SEC

Stands for the Securities and Exchange Commission, a U.S. government agency that oversees and enforces federal securities laws to protect investors and ensure market integrity.

Dividends

Distributions of earnings allocated by a company to its shareholders, often in the form of cash payments or additional shares.