Question

1. Define the Objective Theory of Contracts.

2. On May 1, Brand Name Industries, Inc. (BNI), sent Carol a letter, via overnight delivery, offering to employ her to audit BNI’s financial statements for the current year for $10,000. In the letter, BNI stated that Carol had ten days to accept. On May 5, Carol sent BNI a fax that stated, “The price for the audit seems too low. Would you consider paying $12,000?” BNI received the fax. The next day, Dan offered to conduct the audit for $8,000. On learning of Dan’s offer, Carol immediately e-mailed BNI, agreeing to do the work for $10,000. BNI received this e-mail on May 7. Explain why BNI and Carol do, or do not, have a contract.

Answer 1

Answer 0 The objective theory of contract that an agreement between two parties Exposes of a reasonable person could judge The acts and behaviors of the parties Enough to objectively construire agreement. carol and BNI do not have a contract the season for this is that the original offer made by Bill was not accepted by carol and she made Scanned with CamScanner

The offer made by Carol is not accepted by BNI which leads to no contract Between the the platill and BNT Acepted someone else.offer. - * Scanned with CamScanner