A bailment was created between Owen and Padma. The bailment involved the storage of a widget for 12 months. The price for storage was $1000 per month. At the end of the year, only $5000 had been paid in total. The widget was worth $10 000. It was sold for that amount under a lien and right of sale. Ignoring the costs associated with the enforcement of the lien and the right of sale, when the sale proceeds are distributed, the bailor will be entitled to receive

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The bailor is entitled to receive the sale proceeds minus the unpaid storage fees. The total storage fee for 12 months is $12,000. Since only $5,000 was paid, $7,000 is owed. The widget sold for $10,000, so the bailor receives $3,000 after the $7,000 debt is deducted.

A Bailment Was Created Between Owen and Padma