Asked by
Cedryc Coreyon
on Nov 23, 2024
Verified
Appliance Paradise sold Carson a refrigerator by Conditional Sale Agreement, duly registered. Carson some months later, in the course of moving to another province offered it to a neighbour, Jones, who was helping Carson load his van. Jones recognized it as a bargain and in good faith paid Carson. On demand from Appliance Paradise, Carson refused to make further payments. Jones refuses to pay, citing that he is a bona fide purchaser for value. Appliance Paradise
A) has no action against Jones.
B) may seize and sell the refrigerator, and sue either Carson or Jones for any deficiency.
C) may seize and sell the refrigerator, and sue Carson for any deficiency.
D) may seize and sell the refrigerator, and sue Jones for any deficiency.
E) has no further action against Carson.
Conditional Sale Agreement
A legal contract where the sale of goods or property is contingent upon specific conditions being met, often relating to payment terms.
Bona Fide Purchaser
An individual who purchases something in good faith without notice of any prior claims, liens, or encumbrances.
Refrigerator
An appliance used for keeping food and drinks cold.
- Understand the implications of secured transactions for bona fide purchasers for value.
Verified Answer
ID
Learning Objectives
- Understand the implications of secured transactions for bona fide purchasers for value.