Asked by christopher Neville on Jul 25, 2024
Verified
Sabrina contracts to buy 50 porch swings for her retail store. The swings have been identified to the contract and a down payment of $200 of the $1,250 purchase price has been paid. If the seller becomes insolvent, Sabrina may still pay $1,050 and get the swings.
Insolvent
A financial state where an individual or entity cannot meet their debts as they become due.
Down Payment
An initial upfront portion of the total amount due, typically in the context of purchasing expensive goods like cars or real estate, representing a fraction of the full price to reduce the loan amount.
- Recognize the vital importance of the party's capability to recover property or damages during instances of financial failure or misconduct.
Verified Answer
DH
Dash Heart DunkleJul 28, 2024
Final Answer :
True
Explanation :
Under the Uniform Commercial Code (UCC), when goods have been identified to a contract and the buyer has made a part payment, the buyer has the right to recover the goods from an insolvent seller upon tendering the remainder of the purchase price.
Learning Objectives
- Recognize the vital importance of the party's capability to recover property or damages during instances of financial failure or misconduct.