Brilles brings an action against Hough to recover the automobile. What judgment?
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Brilles offered to sell his used automobile to Nevarro for $12,600 cash. Nevarro agreed to buy the car, gave Brilles a check for $12,600, and drove away in the car. The next day Nevarro sold the car for $13,000 to Hough, a bona fide purchaser. The $12,600 check was returned to Brilles by the bank in which he had deposited it because of insufficient funds in Nevarro’s account. Brilles brings an action against Hough to recover the automobile. What judgment? |
Explanation
Sections 2-403 (1) (b) and (c) of the Uniform Commercial Code provides an individual, with a revocable title, the authority to shift goods title to another person for legitimate value. When the goods have been delivered under a purchase agreement, the purchaser may exercise such power even to Person H, in this case. So, Person B, here, is not going to win the case against Person H.
Verified Answer
Here, the settlement may be for Person H. Person N may have secured the voidable title to the auto when the purchase was made, with a check worn on an account with inadequate balance. This empowered Person N to shift the goods title to Person H since Person H is a bona fide purchaser for value.
