Cody Signs and Returns a Letter from Dora,referring to Her

question 45

Essay

Cody signs and returns a letter from Dora,referring to her sale of the Bar-D Ranch and its price.When Cody attempts to complete the deal,Dora re-fuses,claiming that they have no con-tract.Cody claims they do.What standard determines whether these parties have a contract?

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Definitions:

Cash

Physical or digital money in hand or readily available for transactions or use.

Convertible Debt

A short-term loan that can be turned into equity when future financing is issued.

Convertible Bond

A type of bond issued by a corporation that can be converted into a predetermined number of the company's equity shares at certain times during the bond's life, usually at the discretion of the bondholder.

Revolving Debt

A form of credit that allows the borrower to draw down, repay, and redraw loans repeatedly up to a certain credit limit.