A bailor is better off on the insolvency of its bailee than a creditor on the insolvency of its debtor.

Question

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A bailor who has entrusted their property to a bailee has a right to claim the property back in case of the bailee's insolvency. On the other hand, a creditor who has extended credit to a debtor may have to compete with other creditors to recover their money in case of the debtor's insolvency. Therefore, a bailor is better off than a creditor in this scenario.

A Bailor Is Better Off on the Insolvency of Its