Enforceable agreement

Assignment Help Financial Accounting
Reference no: EM131247492

Amy Kemper was seriously injured when her motorcycle was struck by a vehicle driven by Christopher Brown. Kemper’s attorney wrote to Statewide Claims Services, the administrator for Brown’s insurer, asking for “all the insurance money that Mr. Brown had under his insurance policy.” In exchange, the letter indicated that Kemper would sign a “limited release” on Brown’s liability, provided that it did not include any language requiring her to reimburse Brown or his insurance company for any of their incurred costs. Statewide then sent a check and release form to Kemper, but the release demanded that Kemper “place money in an escrow account in regards to any and all liens pending.” Kemper refused the demand, claiming that Statewide’s response was a counteroffer rather than an unequivocal acceptance of the settlement offer. Did Statewide and Kemper have an enforceable agreement?

Reference no: EM131247492

Questions Cloud

Alternative compensation packages to induce to retire : Amy Applegate is 60 years old and has been asked to accept early retirement from her company. The company has offered three alternative compensation packages to induce Amy to retire: $400,000 cash payment to be paid immediately. A 15-year annuity of ..
What is the unit cost for the direct materials : What is the unit cost for the direct materials for 2011, assuming 500,000 units are produced direct materials costs ate $4.30 per unit when 200,000 units are produced? Changes in accounting principle are always handled in the current or prospective p..
Taxation of business entities : Wolverine Corporation made a distribution of $500,000 to Jim Har Inc. in par-tial liquidation of the company on December 31 of this year. Jim Har Inc. owns 100 percent of Wolverine Corporation. The distribution was in exchange for 50 percent of Jim H..
What is the monthly insurance expense rate : The prepaid insurance balance of $12,000 at December 31, 2013 is for an annual property and liability policy with an annual cost of $24,000. The policy was purchased on July 1, 2013 and expires on June 30, 2014. There was no prepaid balance for the h..
Enforceable agreement : Amy Kemper was seriously injured when her motorcycle was struck by a vehicle driven by Christopher Brown. Kemper’s attorney wrote to Statewide Claims Services, the administrator for Brown’s insurer, asking for “all the insurance money that Mr. Brown ..
The balance of purchase price was on credit : On 1 September, Harvey Ltd purchased a second hand vehicle for $5,400. On 20 November, the company purchased another vehicle costing $7,000 and the dealer offered a trade-in for the old vehicle of $4,950. The balance of purchase price was on credit. ..
Cash-basis engineering consultant : Dowd, a cash-basis engineering consultant, wanted to defer income to next year. A client who was in Dowd’s office on December 31 of the current year offered to pay his $2,000 bill immediately, but Dowd told him to pay in January. Dowd also told his o..
Use the cash method of accounting : Which of the following entities may not use the cash method of accounting?
Journal entries for the purchase of machinery : Suvidha Ltd. purchased machinery worth Rs 1,98,000 from Suppliers Ltd. The payment was made by issue of 12% debentures of Rs 100 each. Pass the necessary journal entries for the purchase of machinery and issue of debentures when:

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute the economic order quantity

For each of the following independent cases, use the equation method to compute the economic order quantity.

  Classified an other-not-for-profit organization

A not for profit agricultural society received a gift on 1/1/14 of a tractor. The society plans to use it to cut grass in its 3000 acre demonstration agricultural farm. The gift had been purchased by the donor for $50,000 but had a fair value of $60,..

  Use compressed adjusted present value model

Assume that firms U and L are in the same risk class, and that both have EBIT = $500,000. Firm U uses no debt financing, and its cost of equity is rsU = 14%. Firm L has $1 million of debt outstanding at a cost of rd = 8%. There are no taxes. Assume t..

  Calculation of capital budgetinga company has the following

calculation of capital budgeting.a company has the following income statement. what is its net operating profit after

  Investment in camerons 2013 balance sheet

The difference was attributable to the fair value of Lake''s buildings and its land exceeding book value, each accounting for one-half of the difference.

  Explain why should investment securities even be separated

Should this be the sole criterion to be used in classifying investment securities? Explain why should investment securities even be separated into different classifications? Why not just treat them all the same so you would not have to worry about..

  Cost of goods manufactured

The accounting records of Bronco Company revealed the following information: Bronco's cost of goods manufactured is:

  Revenue recognition-point of sale

(Revenue recognition-point of sale) Jupiter Company sells goods on January 1 that have a cost of $500,000 to Danone Inc. for $700,000, with payment due in 1 year. The cash price for these goods is $610000, with payment due in 30 days. Prepare the jou..

  Compute denvers profit margin and turnover

Compute Denver's return on assets, profit margin, and asset turnover; both with and without the new product line. Discuss the implications that your findings in part (a) have Denver's decision.

  To classify costs associated with manufacturing firms

to classify costs associated with manufacturing firms merchandising firms or service firms as 1product or period costs

  What amount should regal report as unearned revenue

In its December 31, year 2 balance sheet, what amount should Regal report as unearned revenue?

  Questionhendricks has run the produce club for the first

questionhendricks has run the produce club for the first 10-week season. beforehand becoming a farmer harvey had been a

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd