How should the court rule

Assignment Help Accounting Basics

Reference no: EM131020639

Federal Land Bank (FLB) filed an action to foreclose a mortgage on property owned by Howard and Harriet Franklin. Before trial, FLB's attorney wrote to the Franklin's attorney inviting settlement offers. The Franklin's attorney wrote to FLB's attorney expressing an interest in settling. FLB's attorney responded with an offer that he stated his "client has authorized me to extend." George Johnson, a vice president of FLB, received copies of all letters. The Franklins accepted the offer, but three weeks late the FLB attorney wrote to say that all settlement offers had to be cleared through the Cleveland office. Because their agreement had not been approved by that office, the foreclosure was going to proceed. The Franklins sued, claiming that the FLB attorney had authority to settle the case and that FLB was bound by the settlement agreement. How should the court rule? Discuss fully.

Reference no: EM131020639

Questions Cloud

Significant advantage of a residual dividend policy : A significant advantage of a RESIDUAL DIVIDEND POLICY is the priority put on funding positive NPV projects; this advantage, however, might come at the expense of the CLIENTELE effect, at least in the short run.

Retaining internally generated funds-paying cash dividends : Explain the trade-off between retaining internally generated funds and paying the cash dividends. Which of these does your company (BD-Becton Dickinson and Company) do? From what financial statement did you get this information? Explain the dividend ..

What is the break-even point for sales : What is her profit if she sells 2000 units? What is her profit if she sells 5000 units? What is the break-even point for sales?

Composite cost of capital is saucer-shaped or u-shaped : The CFO of your company (BD-Becton Dickinson and Company) states that the composite cost of capital is saucer-shaped or U-shaped. Explain what this means.

How should the court rule : The Franklins sued, claiming that the FLB attorney had authority to settle the case and that FLB was bound by the settlement agreement. How should the court rule? Discuss fully.

The cost of common equity for the firm : CurrntCompute the cost of capital for the firm for the following. currently bonds with a similar credit rating and maturity as the firm's outstanding deb are selling to yield 7.44 percent while the borrowing firm's corporate tax rate s 34 percent. Th..

Would you decide to work more hours or fewer hours : Suppose the wage you are being paid per hour doubles from $15 to $30. Would you decide to work more hours or fewer hours? Is there an income and substitution effect involved in your decision about how many hours you choose to work? If so, what is ..

How many bonds will firm need to issue to fully fund project : Suppose now (forgetting all prior assumptions) that the firm plans to finance the entire $285 million project by selling 6% coupon bonds. The underwriter will charge a spread of 1.75%; the legal and administrative fees associated with the project amo..

Would a consumer want to buy a larger quantity of the good : Considering only the income effect, if the price of an inferior good declines, would a consumer want to buy a larger quantity or a smaller quantity of the good? Does your answer mean that the demand curves for inferior goods should slope upward? B..

User Account

All Pages