Question

Latisha announces that he intends to sell his business, Payroll Service Company (PSC), at a price below its market value. Quality Bookkeeping, Inc. gives Owen a check for the stated amount. Latisha

1. may refuse to accept the check, because he only expressed an intent to do something

   in the future.

2. is bound to sell PSC to Quality Bookkeeping.

3. may refuse to accept the check, because he only expressed an opinion as to the worth

   of the business.

4. may refuse to accept the check, because he only expressed a willingness to discuss a

   possibility of entering into a contract.

Answer 1

Latisha intent is to sell a business in the future and she is finding the party for the same. Here, She has not entered into a contract with anybody, she is just wanting to sell its business in future. She has not defined the term "future" here. So, the future may mean near future or many days later.

The main thing is she is just announcing the selling thing and not entered into a selling contract with anybody till now. Therefore, since no contract has been entered with any party till now, she is not obliged to accept any check from any party and she may refuse to accept it as there is no formal contract yet.

if she enter into a contract with any party to sell in future she may collect check as advance payment or whatever mentioned into the contract of payment terms and transfer the possession of the business as and when entered into the contract.