Auto Inputs Pty Ltd (Auto) offers to sell a quantity of mechanical component parts to Blue Hills Pty Ltd (Blue Hills) for a price of $35,000. Blue Hills asks for time to consider the offer and check its financial situation. Auto promises to keep its offer open for seven days. Blue Hills makes its enquiries and decides to buy the goods. It advises Auto it accepts the offer on the fifth day after the offer is made. In reply, Auto advisesit has already sold the goods to another entity some hours earlier. Would it make any difference if the goods had been damaged by heavy rain that flooded parts of Auto’s storage yard on the fourth day?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Auto Inputs Pty Ltd (Auto) offers to sell a quantity of mechanical component parts to Blue Hills Pty Ltd (Blue Hills) for a price of $35,000. Blue Hills asks for time to consider the offer and check its financial situation. Auto promises to keep its offer open for seven days. Blue Hills makes its enquiries and decides to buy the goods. It advises Auto it accepts the offer on the fifth day after the offer is made. In reply, Auto advisesit has already sold the goods to another entity some hours earlier.

Would it make any difference if the goods had been damaged by heavy rain that flooded parts of Auto’s storage yard on the fourth day?

 

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