Jon Was Developing a Computer Program for Use by Owners

question 142

Multiple Choice

Jon was developing a computer program for use by owners of track clubs to aid them in keeping records of the members,their runs,times,injuries,etc.Eager to finish the program,Jon,in Edmonton,called his friend Sam,in Calgary,and offered him $2000 to help: five hours per working day,five days per week,for five weeks.Sam said that he would have to think about it.Jon told Sam that he was eager to get going,but that he would hold the offer open until Friday,February 6,at noon.Which of the following is true? (Read each separately.)

• A)If Jon revokes his offer before Friday at noon,Sam could sue him for breach of contract because Jon had promised to hold the offer open.
• B)If the court held that acceptance by mail was reasonable in the circumstances and if Sam accepts by mail,the place of contract is Edmonton.
• C)If Jon goes ahead and hires Betsy from Edmonton at noon on February 3,it would be too late for Sam to accept.
• D)If Sam wants to ensure that the offer will remain open until noon on February 6,he should give Jon some consideration (that is,purchase an option agreement).
• E)If Sam accepts by phone within the time specified in the offer,the place of contract would be Calgary.

---

Definitions:

Revaluation Gain

An increase in the value of an asset over its previously recorded book value, recognized after a revaluation process.

Relevant Exchange Rates

The currency rates used to convert transactions involving foreign currencies into the reporting currency for financial reporting purposes.

Fair Value

The price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Cash Consideration

The total amount of cash that is paid or received during a transaction, such as buying an asset or settling a liability.