Stella has contracted to buy one hundred crystal flower vases from Viola.The vase have been identified to the contract and a down payment of $1,000 of the $10,000 purchase price has been paid.If the Viola becomes insolvent,the Stella may still pay $9,000 and get the goods.

Question

Quizplus · Accepted Answer

This is a valid provision in a contract called a "security interest" or "retention of title" clause. It allows the buyer to pay the remaining balance and still receive the goods if the seller becomes insolvent.

Stella Has Contracted to Buy One Hundred Crystal Flower Vases