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First off, telegrams? Really AICPA? At least it’s better than smoke signals or carrier pigeons.
According to the answer responses “A” is the correct answer. This isn’t true though. Blue’s telegram on the 15th was a counteroffer thus nullifying the original offer by Silk. Even after Blue learned about tint’s offer and accepted Silk’s original offer it wouldn’t make a difference. What am I missing here?On July 1, Silk, Inc., sent Blue a telegram offering to sell Blue a building for $80,000. In the telegram, Silk stated that it would give Blue 30 days to accept the offer. On July 15, Blue sent Silk a telegram that included the following statement: “The price for your building seems too high. Would you consider taking $75,000?” This telegram was received by Silk on July 16. On July 19, Tint made an offer to Silk to purchase the building for $82,000. Upon learning of Tint’s offer, Blue, on July 27, sent Silk a signed letter agreeing to purchase the building for $80,000. This letter was received by Silk on July 29. However, Silk now refuses to sell Blue the building. If Blue commences an action against Silk for breach of contract, Blue will:
A.
win, because Blue effectively accepted Silk’s offer of July 1.B.
win, because Silk was obligated to keep the offer open for the 30-day period.Incorrect C.
lose, because Blue sent the July 15 telegram.D.
lose, because Blue used an unauthorized means of communication.
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