Homework Help: Business Law

Posted by May on Friday, March 28, 2008 at 11:11am.

On July 15, A, owner of a hardwares store, sends a letter to B offering to sell his store, business inventory and good will for total price of $150,000. B sends a letter to A on July 20, accepting the offer n agreeing to buy the business for $150,000. A receives B's letter of acceptance on July 22. B acceptance is
A. effective when mailed on July 20
B. invalid as a counteroffer
C. effective when received on July 22 D. none of above

AFTER sending the letter, A received an offer of $175,000 FOR HIS BUSINESS. As a result, he sends a letter to B on July 19 revoking his offer. B receives the letter on July 21. The revocation

a. Is effective when mailed on July 19
b. terminated the offer prior to B acceptance
c. is effective when received on July 21, n doen't terminate the offer which been accepted
d. none above

After negotiations, A and B enter into a written contract for the sale of the hardware store. Included in the contract is a provision that A can't open a conpeting store within 5 miles of the old store for a period of one yr. Such a contract

a. is illegal as a restraint in trade
b. unreasonably limits competition
c. is reasonable as to are and time and thus, valid
d. none above

Business Law - Writeacher, Friday, March 28, 2008 at 12:25pm
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Business Law - May, Friday, March 28, 2008 at 12:29pm
Common law governed contract follow the mail box rule. As such, an acceptance of a non-output/requirement k is effective upon deposit into the mail. Therefore, any revocation after the point of mailing is a breach.

Second, a revocation is effective upon receipt by offeree. Therefore, the July 19 revocation is not effective.

So i THINK 1.a 2.d. 3.c

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