Mary Bought a New Macintosh Computer and Advertised Her Old

question 26

Multiple Choice

Mary bought a new Macintosh computer and advertised her old computer system for sale for $1500.Mr.Jones offered to pay $1000.Mary said no,that she wanted $1500.Mr.Jones offered $1250.Mary rejected that offer and said she wanted $1500,but then said,"I withdraw my offer,I've decided to give it to a school and apply for the tax benefit." Mr.Jones said,"All right,I'll accept your offer of $1500." Which of the following is true?

• A)There is a contract and Mr.Jones has to pay a reasonable price for Mary's old computer.
• B)There is a contract,because once a seller makes an offer she cannot change her mind; she is bound to receive an acceptance.
• C)There is no contract because Mary revoked the offer before Mr.Jones attempted to accept it.
• D)There is a contract because at some point in time Mary was willing to sell and Mr.Jones was willing to buy the computer system for $1500.
• E)There is no contract because the last offer had lapsed.

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Definitions:

Annual Interest Payment

The total amount of interest paid over one year on a loan, bond, or other financial instrument.

Debtor To Creditor

A financial ratio that compares the amount of debt a company owes to the amount it owes to creditors; often used to evaluate a company's financial leverage.

Yield To Call

The yield to call is the return an investor would receive if they held a bond until its call date, when the issuer has the option to repay the bond before its maturity date at a specified price.

Nominal Yield

The yearly interest income from a bond or fixed-income security, expressed as a percentage of the bond's face value.