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blems A furniture manufacturer, secured by a security agreement, sold furniture

ID: 2581268 • Letter: B

Question

blems A furniture manufacturer, secured by a security agreement, sold furniture to Daniel on credit. When Daniel did not pay as agreed, the creditor repossessed the furniture. This creditor approached one possible buyer for the items but failed to sell them. The creditor then bought the collateral at a private sale and sued Daniel for a deficiency of $7,000. Daniel contends that he is entitled to credit for the full value of the repossessed goods because the private sale was improper. Is Daniel correct? Why or why not? 8.

Explanation / Answer

Daniel knows full well when he is signing that the creditor has the right to repossess goods if not paid even if it is only the last instalment.

So Daniel is wrong

He could agree with the creditor another arrangement but he ( Daniel) should know how the Hire Purchases Act works and act accordingly

The creditor can repossess goods as the agreement in such sales is very clear, the seller can repossess even if 90% has been paid.

So Daniel has to liaise with the seller and come to a settlement