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
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question

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?

 

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education