Ask Question
BusinessBusiness
3 December, 13:01

Jerry knows that Lucy has coveted his classic car for quite some time. Finally willing to sell it, he sends a letter to Lucy offering to sell the car for $15,000. Lucy responds by saying she needs time to arrange financing. Lucy offers Jerry $100 to keep the offer open for two weeks. Jerry agrees, taking the $100. Three days later, Roberta contacts Jerry saying she is interested in buying the car and has the cash to buy it outright. Jerry is concerned that if he doesn't sell the car to Roberta now, she may not be interested later. Furthermore, Lucy may never be able to arrange financing. Jerry is afraid he may end up with no buyer at all. He comes to you for advice. What do you advise

+4
Answers (1)
  1. 3 December, 13:20
    0
    Despite the fact that it seems jerry can easily take a bow of the discussion with Lucy and forge ahead in selling the car to Roberta, he had certain restrictions that he should respect. Accepting $100 from Lucy, Jerry entered into what we know as an "Option" contract, giving an option to Lucy to buy the car in the next two weeks.

    Irrespective of Lucy's financial status, jerry should respect the contract that he has entered into. As a back-up, he can hold discussions with Roberta and can request her to wait for 2 weeks when the option period expires and he can sell the car to her at an outright payment
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Jerry knows that Lucy has coveted his classic car for quite some time. Finally willing to sell it, he sends a letter to Lucy offering to ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Mutual funds can sometimes offer commercial banking and products T True F False
Answers (1)
A newly created design business called Smart Art is just finishing up its first year of operations. During the year, there were credit sales of $40,000 and collections of credit sales of $36,000. One account for $650 was written off.
Answers (2)
S&L Financial buys and sells securities which it classifies as available-for-sale. On December 27, 2021, S&L purchased Coca-Cola bonds at par for $875,000 and sold the bonds on January 3, 2022, for $880,000.
Answers (1)
Contractionary monetary policy a. leads to disinflation and makes the short-run phillips curve shift left. b. leads to disinflation and makes the short-run phillips curve shift right. c.
Answers (1)
One disadvantage of oral communication is the lack of a built-in feedback mechanism.
Answers (2)
New Questions in Business
Androscoggin Copper can grow at 5% per year for the indefinite future. It's selling at $100, and next year's dividend is $5.
Answers (1)
What are two types of businesses that would probably use a sole proprietorship as a form of business ownership?
Answers (1)
Which financial problems might cause a person to be considered a bad risk for a loan to purchase a home? Check all that apply.
Answers (2)
Companies can adapt their catalog revenue model online by replacing or supplementing their print catalogs with information on their Web sites. True False
Answers (1)
The United Kingdom produces computers and sells them to Japan. At the same time Japan produces cars and sells them to the United Kingdom. Suppose there is an appreciation in the pound. This will cause: A.
Answers (1)
Home » Business » Jerry knows that Lucy has coveted his classic car for quite some time. Finally willing to sell it, he sends a letter to Lucy offering to sell the car for $15,000. Lucy responds by saying she needs time to arrange financing.
Sign Up Forgot Password?