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Terry Ltd sells 100 tons of corn to June Ltd for 4,000. June Ltd advances the sum of 400...

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Terry Ltd sells 100 tons of corn to June Ltd for £4,000. June Ltd advances the sum of £400 and takes delivery. After ownership of the corn passes to June Ltd, but before the remainder of the price is paid, June Ltd becomes insolvent. Which of the following most appropriately describes what follows from this per the Sale of Goods Act 1979? (a) (b) (c) (d) The risk passes on delivery not ownership and, because the goods are unascertained, the liquidator for June Ltd must accept the goods and pay the remainder of £3,600. The risk passes with ownership hence Terry Ltd can reclaim the goods from the liquidator in exchange for the return of the £400 advance. The risk remains with Terry Ltd and, because the goods are specific, Terry Ltd bears the loss and June Ltd need not pay the remainder as this is forfeit on liquidation. The risk passes with ownership and, following delivery, Terry Ltd cannot reclaim the goods from the liquidator but can keep the £400 advance and rank as an unsecured creditor for the remainder of £3,600.

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The Legal Environment of Business A Critical Thinking Approach

The Legal Environment of Business A Critical Thinking Approach

ISBN: 978-0132664844

6th Edition

Authors: Nancy K Kubasek, Bartley A Brennan, M Neil Browne

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Posted Date: May 20, 2021 07:00:24
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