WEEK 2 INSTRUCTIONS TO STUDENTS This Assignment carries 20% of your final grade....

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Accounting

WEEK 2
INSTRUCTIONS TO STUDENTS
This Assignment carries 20% of your final grade. Please read carefully and answer ALL questions which carry equal marks.
CASE 1
Ann owns a shop selling prints. She placed an advertisement in the Friday edition of her local paper stating:
'Unique opportunity to own an original Bell print for 500 cash. One only available. Offer valid for one day only - tomorrow Saturday.'
When Con saw the advert, he immediately posted a letter of acceptance. On Monday morning Con's letter arrived.
On Saturday, Di came into Ann's shop and asked Ann if she would take a cheque for 500, but Ann refused to accept the cheque and told Die she could not have the print. Later that day Ann sold the print to Evi.
Question 1?
Ann's advertisement is
A an offer
B an invitation to treat
C a mere statement of selling price
D a statement of intention
Question 2
Which of the following is correct?
A Con has a right to the Bell print because he accepted Ann's offer when he posted his acceptance
B Con does not have a right to the Bell print because his letter arrived on Monday outside the Saturday deadline
C Con does not have a right to the Bell print because his acceptance letter is an offer, not an acceptance
D Con does not have a right to the Bell print because Ann sold it to Evi
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