On December 15, Blake Corp. telephoned Reach Consultants, Inc., and offered to hire Reach to...

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Accounting

On December 15, Blake Corp. telephoned Reach Consultants, Inc., and offered to hire Reach to design a security system for Blakes research department. The work will require 2 years to complete. Blake offered to pay a fee of $100,000 but stated that the offer must be accepted in writing, and the acceptance must be received by Blake no later than December 20.
On December 20, Reach faxed a written acceptance to Blake. Blakes offices were closed on December 20, and Reachs fax was not seen until December 21.
Reachs acceptance contained the following language:
We accept your $1,000,000 offer. Weaver has been assigned $5,000 of the fee as payment for sums owed Weaver by Reach. Payment of this amount should be made directly to Weaver.
On December 22, Blake sent a signed memo to Reach rejecting Reachs December 20 fax but offering to hire Reach for a $75,000 fee. Reach telephoned Blake on December 23 and orally accepted Blakes December 22 offer.
Items 1 through 6 relate to whether a contractual relationship exists between Blake and Reach. Select from the option list provided the best reason each statement is correct or incorrect. Each reason may be used once, more than once, or not at all.

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