rejection by entering into a substitute transaction, he is excused from performance obligations B. Determined by Little condition is not completely within the promisor's control C. Sufficient cause An agreement that gives one party an unfettered right to terminate at any time will be interpreted to require “reasonable notice,” thus placing a limitation on that party's freedom sufficient to satisfy the consideration requirement 1. Certain terms (open) buyer is constrained to request amounts that are not unreasonably disproportional there is clearly consideration for the modification and it is enforceable the modern rule, an offer for a unilateral contract becomes an option for the offeree 2.
Also, the promissor has to expect that, upon the promise, it will induce action by the promisee. The promissor cannot say it wasn't part of the contract. Why does this doctrine exist? The doctrine exists to protect a person who was promised something and there is no essential elements of a contract that exists. Did the court reach the proper decision in the case you discussed?
Analysis of Issue On what basis did Medicis initially justify the use of replacement cost to estimate returns? Why is it valid or invalid? Medicis justified the use of replacement to estimate returns using ASC 605-15-15-2 (Revenue Recognition - Products – Scope and Scope Exceptions) which states including: 15-2 (a). [E]xchanges by ultimate customers of one item for another of the same kind, quality, and price (for example, one color or size for another) are not considered returns for purposes of this Subtopic. E&Y reasoned this as it creates an exception to the general rule of reserving for expected future product returns at the gross sales price and deferring the recognition of an equal amount of revenue.
In addition, these invoices should have an adequate e-mail/written audit trail to ensure segregation of duties. With this, the human error factor should be eliminated by 99%, with a higher change that each invoice sent to the customers is completely accurate. If the invoices are compliant that should significantly reduce the risk that sales or cost of goods sold are over/understated, thus giving us an accurate financial depiction. This process should also include the quantity ordered, which also need to be verified by the shipping manager. Each process needs an adequate trail to avoid arithmetical errors or typos.
c) Subagent. Correct 11. Which of the following would not be an advantage of buyer brokerage? b) A buyer agent can negotiate on behalf of the sellers without violating his or her fiduciary duties to the buyer. Correct 12.
This agreement protects both partners from divulging any information to third parties and is usually set forth within a given time frame and executed as a two way agreement. The sixth and last agreement I used when a company is setting up stock options. This type of agreement is used as incentives especially for new companies in which they offer these options to key top management in order to provide them with ownership and interest in their company. There are two types of options one which is called incentives stock options (ISO) which qualifies for preferential tax provided the owner holds the stock for one year and one day after exercise and two years after it sets to be renewed, whichever is the latest. Under law the employee is not required to pay any taxes and will have to pay capital gains tax.
If a situation should occur then the company could be covered by t the Conflict of laws which has three branches , Jurisdiction whether the forum court has the power to resolve the dispute at hand, Choice of law the law which is being applied to resolve the dispute, and Foreign judgments the ability to recognize and enforce a judgment from an external forum within the jurisdiction of the adjudicating forum. When a company enters into a contract with another company overseas the contract should be clear of which area their conflicts will be solved. Most often it is more cost effective to leave these conflicts to arbitration, more so if the company is not a part of any international trade groups. Foreign judgments can also be a great tool if they are on a neutral ground. Either foreign judgments or arbitration must have a binding clause in the contract to
What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? Chou had an e-mail from BTT stating the terms of the agreement but should have redrafted the terms to include the term contract. The objective intent to contract was a serious offer and happened three days before the original expiration date of the original agreement. 3. Does the fact that the parties were communicating by e-mail have any impact on your analysis in Question 1 and 2 Yes, I feel the terms were agreed upon and the agreement should be honored for the 25,000.00, however the change in management could have been a result of no longer wanting to pursue the distribution of the game.
It must include the fundamental terms of the agreement with the intention that no further negotiations are to take place. An invitation to treat is different to an offer as it only invites the party to make an offer and it is not intended to be binding. ix) In contract law consideration is required as an inducement to enter into a contract that is enforceable in the courts. It is an essential element for the formation of a contract. What constitutes sufficient consideration, however, has been the subject of continuing legal debate.
The interest charged on the multimillion dollar loan clearly will have a significant impact on the company’s financial reports. Thus, the Financial Accounting Standards Board (FASB) established SFAS No. 34, “Capitalization of Interest Costs,” to provide guidance on how to record this type of interest properly. Basically, this standard explains that the interest on the loan for building your new facility can be capitalized, as part of the costs of the facility because it meets their two criteria, (1) it is not yet ready for use, and (2) it is currently under construction (p.