Asked by Paige Colley on Apr 27, 2024
Verified
Tom orders $24,000 worth of premium bicycles from Budnitz,a premium bicycle manufacturer,to sell in his Tom's Bike store.After the bicycles are loaded into the freight truck and are on their way to Tom,Budnitz discovers that Tom is insolvent and unlikely to be able to pay for them.Budnitz has the right to:
A) stop the delivery and sue for any damages.
B) cure the delivery and sue for any damages.
C) cover the tender and sue for any damages.
D) seasonably reject the tender.
Insolvent
Inability of a business entity to pay its debts as they become due in the usual course of business.
Premium Bicycles
High-quality bicycles often featuring advanced materials, technology, and design, and typically sold at a higher price point than standard models.
Freight Truck
A large vehicle used for transporting bulk goods, materials, or commodities over land.
- Gain insight into the roles of sellers and buyers concerning the offer, delivery, and reception of goods.
- Clarify the legal options for redress in cases of contract breaches, specifically focusing on specific performance and indemnity.
Verified Answer
Learning Objectives
- Gain insight into the roles of sellers and buyers concerning the offer, delivery, and reception of goods.
- Clarify the legal options for redress in cases of contract breaches, specifically focusing on specific performance and indemnity.
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