Alden not to deliver the apples. Discuss the correctness of the contentions of Packer’s executor.

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Alden not to deliver the apples. Discuss the correctness of the contentions of Packer’s executor.

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Packer owned and operated a fruit cannery in Southton, Illinois. He stored a substantial number of finished canned goods in a warehouse in East St. Louis, Illinois, owned and operated by Alden, in order to have goods readily available for the St. Louis market. On March 1, he had ten thousand cans of peaches and five thousand cans of apples in storage with Alden. On the day named, he borrowed $5,000 from Alden, giving Alden his promissory note for this amount due June 1 together with a letter authorizing Alden, in the event the note was not paid at maturity, to sell any or all of his goods in storage, pay the indebtedness, and account to him for any surplus. Packer died on June 2 without having paid the note. On June 8, Alden told Taylor, a wholesale food distributor, that he had for sale as agent of the owner ten thousand cans of peaches and five thousand cans of apples. Taylor said he would take the peaches and would decide later about the apples. A contract for the sale of ten thousand cans of peaches for $6,000 was thereupon signed “Alden, agent for Packer, seller; Taylor, buyer.” Both Alden and Taylor knew of the death of Packer. Delivery of the peaches and payment were made on June 10. On June 11, Alden and Taylor signed a similar contract covering the five thousand cans of apples, delivery and payment to be made June 30. On June 23, Packer’s executor, having learned of these contracts, wrote Alden and Taylor stating that Alden had no authority to make the contracts, demanding that Taylor return the peaches, and directing Alden not to deliver the apples. Discuss the correctness of the contentions of Packer’s executor.

Explanation & AnswerSolution by a verified expert

Explanation

Individual A has agency relationship with Individual P. Individual A also has an interest in the revenue that is going to be generated after selling the commodities related to the contracts. Debt can be recovered by Individual A by selling the commodities, in case Individual P fails to do so. After the death of Individual P, Individual A got the amount back, which was given to Individual P by selling Commodity P, and there was no further need to sell Commodity A to Individual T since the amount has already been recovered by Individual A. So, the individual representing Individual P can ask Individual A to not sell Commodity A but the individual representing Individual P cannot ask Individual T to return Commodity P.

Verified Answer

The officer from Individual P's side is right in stating that Commodity A should not be delivered by Individual A. The officer from Individual P's side is not right in stating that Commodity P should be returned by Individual T.

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