Fact Pattern 14-1 (Questions 26-27 Apply)

question 30

Multiple Choice

Fact Pattern 14-1 (Questions 26-27 apply)
Macho Marketing, Inc., and Nacho Food Corporation (NFC) discuss the terms of a contract. Macho faxes NFC a memo on Macho’s letterhead that summarizes the items on which they agree, including a two-year term. NFC begins to perform, but Macho refuses to pay. NFC begins to perform, but Macro refuses to pay.

-Refer to Fact Pattern 14-1.Between Macho and NFC,the memo is

• A)an oral contract.
• B)a pre-contract.
• C)a written contract.
• D)no contract.

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Definitions:

Mortgage

A loan taken out by people to purchase a house.

Co-op

A cooperative, which is an organization owned and operated by its members who share the benefits.

Cooperative Corporation

A business entity owned and operated by a group of individuals for their mutual benefit, where profits and earnings are distributed among the members.

Shares

Represents units of ownership in a company or financial asset, giving the holder a portion of the corporation's earnings and assets.