On June 1, 2005, Ahmad mailed a written offer to Zaid for the sale of an office building. The offer included an express term that it would expire on July 30, 2005 if the acceptance was not delivered into the hands of the offeror by the expiration date. On July 30, 2005 at 8:00 a.m., Zaid sent a written acceptance to Ahmad via Zaid’s personal messenger. However, the messenger was not able to deliver the acceptance until August 1, 2005. On August 2, 2005, Ahmad contacted Zaid, informing him that the acceptance had been delivered one day late. As a result, Ahmad refused to honor the acceptance. Which of the following is the most correct statement? Explain with the help of revelant section. a. There is no contract between Ahmad and Zaid. However, if Ahmad would have mailed the acceptance on July 30, 2005, a contract would have been created. b. There is a contract between Ahmad and Zaid. The moment that Masse gave the acceptance to the messenger, a contract was formed because acceptances are valid immediately upon dispatch. c. There is a contract between Ahmadd and Zaid. The fact that the acceptance arrived only one day late is of no significance. d. There is no contract between Ahmad and Zaid
On June 1, 2005, Ahmad mailed a written offer to Zaid for the sale of an office building. The offer included an express term that it would expire on July 30, 2005 if the acceptance was not delivered into the hands of the offeror by the expiration date. On July 30, 2005 at 8:00 a.m., Zaid sent a written acceptance to Ahmad via Zaid’s personal messenger. However, the messenger was not able to deliver the acceptance until August 1, 2005. On August 2, 2005, Ahmad contacted Zaid, informing him that the acceptance had been delivered one day late. As a result, Ahmad refused to honor the acceptance. Which of the following is the most correct statement? Explain with the help of revelant section. a. There is no contract between Ahmad and Zaid. However, if Ahmad would have mailed the acceptance on July 30, 2005, a contract would have been created. b. There is a contract between Ahmad and Zaid. The moment that Masse gave the acceptance to the messenger, a contract was formed because acceptances are valid immediately upon dispatch. c. There is a contract between Ahmadd and Zaid. The fact that the acceptance arrived only one day late is of no significance. d. There is no contract between Ahmad and Zaid
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On June 1, 2005, Ahmad mailed a written offer to Zaid for the sale of an office building.
The offer included an express term that it would expire on July 30, 2005 if the acceptance was not
delivered into the hands of the offeror by the expiration date. On July 30, 2005 at 8:00 a.m., Zaid
sent a written acceptance to Ahmad via Zaid’s personal messenger. However, the messenger was
not able to deliver the acceptance until August 1, 2005. On August 2, 2005, Ahmad contacted Zaid,
informing him that the acceptance had been delivered one day late. As a result, Ahmad refused to
honor the acceptance. Which of the following is the most correct statement? Explain with the help
of revelant section.
a. There is no contract between Ahmad and Zaid. However, if Ahmad would have mailed the
acceptance on July 30, 2005, a contract would have been created.
b. There is a contract between Ahmad and Zaid. The moment that Masse gave the acceptance to
the messenger, a contract was formed because acceptances are valid immediately upon dispatch.
c. There is a contract between Ahmadd and Zaid. The fact that the acceptance arrived only one day
late is of no significance.
d. There is no contract between Ahmad and Zaid.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education