Why Does a Rejection by the Offeree Terminate His Power

question 12

Multiple Choice

Why does a rejection by the offeree terminate his power to accept the offer?

• A)It indicates his inability to perform the contract.
• B)It indicates that the offeree is uninterested.
• C)It allows the offeror to approach a different offeree.
• D)It indicates a lack of intent making any future contract illegal.

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Definitions:

Unamortized Premium

The portion of a bond premium that has not yet been amortized or gradually written off over time.

Installment Note

A financial instrument that requires the issuer to make regular payments of both principal and interest to the holder until the debt is paid off.

Interest Portion

Part of a loan payment that is attributed to interest charges on the borrowed principal amount.

Principal Amount

The original sum of money borrowed in a loan or put into an investment, excluding interest or profit.