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
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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
For the first question:
To determine the answer, we need to understand the concept of the "mailbox rule" or "postal acceptance rule". According to this rule, an acceptance of an offer is valid and effective when it is posted (mailed), rather than when it is received by the offeror.
In this case, B sent their acceptance letter on July 20. According to the mailbox rule, B's acceptance is effective when it was mailed on July 20. Therefore, the correct answer is:
A. effective when mailed on July 20
For the second question:
A revocation of an offer is valid when it is actually received by the offeree. In this case, A sent the revocation letter on July 19, and B received it on July 21. Therefore, the revocation is effective when it was received on July 21. The correct answer is:
c. is effective when received on July 21 and doesn't terminate the offer which has been accepted
For the third question:
The contract provision that restricts A from opening a competing store within 5 miles of the old store for a period of one year is a non-compete clause. Non-compete clauses are often scrutinized by the courts and their enforceability depends on various factors, such as reasonableness in terms of area and time.
In this case, if the court determines that the restriction is reasonable in terms of its geographical area (5 miles) and duration (1 year), it would be considered valid and enforceable. Therefore, the correct answer is:
c. is reasonable as to area and time and thus, valid