Ralph Wants to Purchase Either the Stock or the Assets

question 67

Essay

Ralph wants to purchase either the stock or the assets of Red, Inc., a C corporation.
a. Under what circumstances would Ralph prefer to purchase the stock from the shareholders?
b. Under what circumstances would Ralph prefer to purchase the assets from the corporation?

---

Definitions:

Acceptance Of Goods

The act of a buyer signifying approval of goods received, implying that the goods meet contractual specifications and terms.

Commercial Impracticability

A doctrine under contract law where a party is excused from performing their contractual duties because unforeseen events have made performance excessively burdensome or impracticable.

Excuse Performance

A legal doctrine that allows a party to be released from a contractual obligation when events beyond their control prevent them from performing.

Rejection Is Ineffective

A legal principle indicating that simply refusing or rejecting an offer or contract does not nullify or void its terms or its potential effects.