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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Quizplus · Accepted Answer

The bailor is entitled to receive the remaining amount after the expenses of the bailment have been paid. In this case, only $5000 was paid for the 12 months of storage, leaving a balance of $5000. When the widget was sold for $10,000, the expenses associated with the lien and right of sale must be deducted. Let's assume those expenses come to $3000. Thus, the remaining amount is $7000, which is what the bailor is entitled to receive.

A Bailment Was Created Between Owen and Padma