- This topic has 5 replies, 2 voices, and was last updated 8 years ago by
.
- Posts
“Jac took delivery of a consignment…”
Mike, hello. Could you please explain me this question? I am reading the answer but i think i dont get it…Hi Igrar
I’m sorry to say that I probably can’t help you. I have very little material to hand now that I’m no longer actively teaching
I DO have a BPP Revision Kit for F4 English relevant to August 2016 but question 5.15 has nothing to do with Jac
If you want my assistance then I’m going to have to ask you to type out the full question for me
Sorry 🙁
Ok, here it goes.
Jac took delivery of a consignment of fresh fruit from Kel. He intended to reject the goods for lack of conformity but Kel could not collect the fruit for a week, by which time the fruit would have perished. The value of the fruit under the contract was $2,000 and Jac decided to sell the fruit rather than let them perish. The fruit was sold for $1,500 and Jac incurred $300 selling expenses.
In these circumstances, which of the following statements is correct?
A Jac must pay Kel $2,000 for the fruit, he cannot claim back any selling expenses
B Jac must pay Kel $1,500 for the fruit less $300 selling expenses
C Jac must pay Kel $2,000 for the fruit less $300 selling expenses
D Jac must pay Kel $1,500 for the fruit, he cannot claim back any selling expensesOk, thanks for this.
I’m assuming that the question is in the section for agency and not for international sale of goods and rejection for non-conformity
There is an issue here in that there’s only an implied indication that Jac notified Kel of the intention to reject on the non-conformity grounds (“but Kel could not collect the fruit for a week”)
But, setting that consideration aside, this looks to me that Jac is an agent of necessity, has the implied authority to sell the goods on Kel’s behalf and in doing so has mitigated Kel’s potential loss
In his capacity as an agent Jac is entitled to be repaid reasonable expenses incurred whilst acting on behalf of his principal and thus, in my view, Jac should pay to Kel $1,500 less $300 selling expenses – a net sum of $1,200
And that’s answer option B
Did I get it right?
yes, right, it is B.
But the question is in topic for risks and obligation in contracts for int sales. but i get the idea. thank you.
- You must be logged in to reply to this topic.