Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer only if you are sure about the answer. Computers, Inc. (Computers) and Management Enterprises Company (Management) agreed that Computers would sell Management its

Please answer only if you are sure about the answer.

Computers, Inc. (Computers) and Management Enterprises Company (Management) agreed that Computers would sell Management its computing business, including the land on which the business was situated, for $600,000. Both Computers and Management knew at the time the contract was formed that the business and land were actually worth $1,000,000. Is this a valid enforceable sales contract?

A. No, because Computers would not have agreed to sell the business for 40% less than its value unless it was under duress by Management to sell.

B. No, because $600,000 is not valid consideration for a business worth $1,000,000.

C. Yes, provided the contract was in accordance with state statutory law that permits real estate sales for 40% or more below market value.

D. Yes, provided the contract was in writing, in accordance with the Statute of Frauds, and the parties freely consented.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For Executives Managing For Value Creation

Authors: Gabriel Hawawini, Claude Viallet

7th Edition

1473778913, 978-1473778917

More Books

Students also viewed these Finance questions

Question

3. Experiment with cooperative learning activities.

Answered: 1 week ago