Question

Question 22 (6 points) Assume that neither deal goes through and Bill Bellahen negotiates a sale with Jeery Bones, a wealthy 85 year old investor. At their meeting, Jeery seems very confused and keeps asking Bill why he is there. Bill offers to sell the restaurants to Jeery for $20 million to which Jeery replies, " That seems low- I will pay $50 million!". Bill is delighted particularly since Jeery has not even seen the financial statements. After they sign the agreements, Jeery's accountant objects and tells Bill" There is no deal". Is there? Why or why not?

Answer 1

In my opinion, there is already a deal between Bill and Jeery since the agreement has already been signed between both the parties. If Jeery or his acountant had any objection to the deal,it should have been raised before signing the deal. Once the deal is already signed between both the parties, Jeery's accountant cannot come at a later stage and say that there is no deal at all.