BUSINESS LAW
BUSINESS LAW
17th Edition
ISBN: 9780357007594
Author: Mann
Publisher: Cengage Learning
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Chapter 10, Problem 13Q
Summary Introduction

To discuss: The decision for person W.

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On May 1, Melforth Realty Company offered to sell Greenacre to Dallas, Inc., for $1 million. The offer was made by a letter sent by overnight delivery and stated that the offer would expire on May 15. Dallas decided to purchase the property and sent a letter by registered first-class mail to Melforth on May 10, accepting the offer. Due to unexplained delays in the postal service, Melforth did not receive the letter until May 22. Melforth wishes to sell Greenacre to another buyer, who is offering $1.2 million for the tract of land. Has a contract resulted between Melforth and Dallas?
Omar, owner of a copying machine leased it to Lisa at a rental of P4,000.00 a month for a period of one year with option on the part of Lisa to buy the copying machine at the end of one year for P80,000.00. to be paid by applying the rentals, so that Lisa needs only to pay P32,000.00.Lisa failed to pay the rentals for the 4th, 5th and 6th months so that Omar terminated the lease and repossessed the copying machine, then sued Lisa for the unpaid rentals of three months or P12,000.00.Is Omar’s suit legally tenable? Explain.
Kathy gives property she has owned for 5 years to Janelle. At the time of the gift, the property had a basis of $35,000 and a FMV of $42,500. If on the day she receives the property Janelle sells the property for $33,000, what is Janelle’s gain or loss? Mark gives his son, Mac, stock which has an adjusted basis of $15,000 and a FMV on the date of the gift of $12,000. Mark owned the stock for three years before making the gift. If Mac sells the stock two weeks later for $16,000, what is his gain or loss? If Mac sells the stock two weeks after receiving the gift for $10,000, what is his gain or loss? If Mac sells the stock two weeks after receiving the gift for $13,000, what is his gain or loss?
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