QUESTION 25 lason bought a boat from Moritz Marine for monthy payments of $350.

Question

QUESTION 25 lason bought a boat from Moritz Marine for monthy payments of $350. lason missed four payments and Moritz repossessed the boat. Due to the condition of the boat, Moritz could only sell the boat for $18,000 even though Jason still owed $20,000 on the boat. Can Moritz recover anything from Jason? O A No, Moritz was not allowed to take someone else's property. O B. No, Moritz was not allowed to sell someone else's property. O C No, Moritz took the risk of loss by allowing Jason to pay by monthly payments O D. Yes, Moritz can recover $2,000 from Jason.

Explanation / Answer

D: Yes Moritz can recover the $2000 from Jason.

As per the law, the difference between the amount recovered from sale of goods and the amount owed by the borrower can be recovered from the borrower. In this case Jasen was liable to pay $20,000 but due to resale, $18,000 was recovered by Moritz. This amount will be set off against the amount due from Jason and the balance $2000 will be recoverable from Jason.

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