Sound Experience Inc sold a carton of personal CD players to Noriel.The contract requires Noriel to pay the total price of $10 000 upon delivery.The contract required Sound Experience to deliver no later than March 15.Sound Experience therefore gave the carton to an independent carrier on March 7, along with instructions for delivery to Noriel.On March 12, however, Sound Experience learned that Noriel had become insolvent and almost certainly would not be able to pay for the CD units.Which remedy should Sound Experience use?

Question

Quizplus · Accepted Answer

Stoppage in transit allows the seller to stop the delivery of the goods if the buyer is insolvent or unable to pay for the goods. In this case, since Sound Experience learned of Noriel's insolvency before the delivery was made, they can use the remedy of stoppage in transit to prevent delivery and protect their interests. This would give them the opportunity to either renegotiate the terms of the contract or to sell the goods to another buyer.

Sound Experience Inc Sold a Carton of Personal CD Players