Donald Visited the Premises Owned by Mary's Hay Farm Ltd

question 6

Essay

Donald visited the premises owned by Mary's Hay Farm Ltd.and viewed a stack of more than 4000 bales of hay.He agreed to purchase 800 bales for $2.00 per bale.He paid the $1600 and advised that he was going to get his truck and would return in about three hours.When Donald returned three hours later he noticed that there was a smoldering pile of debris where the stack of bales had previously been.The entire stack had been destroyed.Who is entitled to the $1600? Give the legal basis for your answer.What additional fact do you need to know in order to confirm your answer?

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Definitions:

Overhead Costs

Indirect costs not directly tied to a specific job, product, or service but necessary for the business operations.

Process Involved

The series of actions or steps taken in order to achieve a particular end, typically in the context of manufacturing or business operations.

Activity-based Costing

A method of cost accounting that identifies specific activities related to the production of goods and services, assigning costs based on actual consumption of resources.

Volume-based Measures

Metrics or indicators that are calculated based on the quantity or volume of items produced, sold, or used, such as units sold or hours worked.