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ACC 612 - GVSU F17 - EXAM 2 QUESTIONS AND COMPLETE ANSWERS ...

Agency Def: Relationship authorizing one party (the agent) to act for and on behalf of the other party (the principal). Agency = Principal AND Agent Formation of the Agency Relationship Consensual Agreement. -Formed through express consent (oral or written) -Equal Dignity Rule. Some states: if law requires written contract, Agent's authority must be in writing. (example: land sales contract) Agency is a "fiduciary" relationship based on trust and confidence. No consideration requi...

On April 2, Jet Co. wrote to Ard, offering to buy Ard's building for $350,000. The offer contained all of the essential terms to form a binding contract and was duly signed by Jet's president. It further provided that the offer would remain open until May 30 and an acceptance would not be effective until received by Jet. On April 10, Ard accepted Jet's offer by mail. The acceptance was received by Jet on April 14. For this item only, assume that on April 13 Ard sent a letter to Jet w...