Question

Ann was offered a job that would pay $20 000, that would provide for 18 days of vacation after one year of employment, and that would begin one week after her graduation. She wrote back that she would accept the job, but that she would not begin until three weeks after graduation and needed at least 21 days of vacation after the first year of work. On these facts, which of the following is true?

A) There is no contract because an acceptance must be unconditional, and Ann's counter-offer has not been accepted.
B) There is a contract as soon as Ann drops her letter in the mailbox.
C) If Ann had not responded, there would have been a contract because silence is the standard form of acceptance.
D) Ann is still free to reconsider and take the original offer even after the prospective employer receives her letter.
E) Since Ann accepted the offer, there is a contract.

Answer 1

There is no contract between Ann and the employer because Ann's response constituted a counter-offer, which changed the original terms of employment offered. The original offer must be accepted without changes for a contract to be formed. The correct answer is: A) There is no contract because an acceptance must be unconditional, and Ann's counter-offer has not been accepted.

Step-by-step explanation:

Based on the information provided, which of the following is true: Ann was offered a job that would pay $20 000, that would provide for 18 days of vacation after one year of employment, and that would begin one week after her graduation. She wrote back that she would accept the job but requested a start date three weeks after graduation instead of one and needed at least 21 days of vacation after the first year of work. The correct answer is:

A) There is no contract because an acceptance must be unconditional, and Ann's counter-offer has not been accepted.

When Ann stipulated new terms in her response, this constituted a counter-offer rather than an acceptance of the original offer. A binding employment contract is created when the terms of the acceptance match the terms of the offer without any deviations. Ann's request for a later start date and more vacation days changed the terms, therefore, until the employer accepts these new terms, no contract is in place.

It's essential for individuals to carefully review an employment contract before signing to understand their rights and responsibilities, and to negotiate terms such as salary, start date, and vacation time to ensure the agreement is mutually beneficial.