Carlos Visited Vancouver Last Summer and Instead of Going Back

question 147

Multiple Choice

Carlos visited Vancouver last summer and instead of going back to Ontario he stayed and enrolled at Simon.He needed money but didn't need things left in Ontario,including his car.In mid-December,he wrote a friend and offered to sell the car for $4000 and told him to send him a letter with his answer.His friend received the letter on January 2,checked his financial situation,and sent a letter of acceptance January 3.Meanwhile Carlos,short of cash and not hearing from his friend,sold the car to Mr.Reno on December 31.Carlos received his friend's letter January 8.On these facts,which of the following is false?

• A) In order for there to be a binding contract, there must be an offer and an acceptance.
• B) Not all methods of acceptance are effective upon receipt by the offeror.
• C) Sending an acceptance by mail was a reasonable method of acceptance in this situation.
• D) The letter of acceptance was effective when it was received, and by then Carlos had sold the car, so there was no contract.
• E) The acceptance was effective before it was received, so there was a contract between Carlos and his friend.

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Definitions:

Saving

The process of setting aside a portion of current income for future use or for investment purposes.

Consumption Tax

Taxes applied on spending on goods and services, such as sales tax or Value Added Tax (VAT).

Income Tax

A tax levied by governments on individuals' or entities' income. The rate can vary based on income levels or earnings.

Average Tax Rate

The proportion of total income that is paid as tax, calculated by dividing the total amount of taxes paid by the taxpayer's total income.