After Consuming a Mind-Altering Drug,Hal Buys Some Real Estate from Edith

question 13

Essay

After consuming a mind-altering drug,Hal buys some real estate from Edith for $100,000.Hal was completely wrecked when he made the deal,and could not understand what he was doing.Due to the after effects of the drug,Hal goes into a coma that lasts for one year.As soon as he awakes from the coma,Hal tries to disaffirm his contract with Edith.Edith maintains that Hal cannot disaffirm because he has ratified the contract.What should Hal argue in return?

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Definitions:

Merchandise Inventory

Goods a company holds for the purpose of resale in the normal course of business.

Product Costs

These are costs that are directly associated with the creation of a product, including direct materials, direct labor, and manufacturing overhead.

Period Costs

Expenses incurred by a business that are not directly tied to the production process and are charged to the period in which they occur.

Variable Cost

Expenditures that are directly correlated with the volume of production or output level.