enigno Buyer writes Francene Farmer a letter that states he is willing to purchase 1,000 pounds of apples at a price of $.50 per pound. A. How can Francene accept this contract? B. If Francene writes back stating, “Your terms are agreeable, provided you purchase a minimum of 1,200 pounds of apples.” What is the effect of Francene’s statement? Will it matter whether or not Benigno is also a merchant? C. Assume that the wholesale price of apples is $1 per pound at the time that the offer is made. If Francene accepts it, will she be likely to successfully assert a defense of unconscionably if she later refuses to honor the contract’s terms?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Benigno Buyer writes Francene Farmer a letter that states he is willing to purchase 1,000 pounds of apples at a price of $.50 per pound. A. How can Francene accept this contract? B. If Francene writes back stating, “Your terms are agreeable, provided you purchase a minimum of 1,200 pounds of apples.” What is the effect of Francene’s statement? Will it matter whether or not Benigno is also a merchant? C. Assume that the wholesale price of apples is $1 per pound at the time that the offer is made. If Francene accepts it, will she be likely to successfully assert a defense of unconscionably if she later refuses to honor the contract’s terms?

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