In the text's case of National Compressor Corp.v.Carrow and McGee,the court considered whether a buyer,who purchased a compressor that was subsequently destroyed in a fire on a third party's premises before the buyer took possession,had an insurable interest since title had not yet passed and thus could bring suit against the third party.What was the court's ruling?
A)The Buyer could not sue the third party because title had not passed and thus,it did not have an insurable interest.
B)The Buyer had an insurable and special interest but could not sue the third party because the goods had not been identified to the contract.
C)The Buyer could not sue the third party because it did not have an insurable and special interest.
D)The Buyer had an insurable and special interest and could sue the third party because regardless of whether or not goods had been identified to the contract.
E)The Buyer had an insurable and special interest and could sue the third party because the goods had been identified to the contract.

Question

Quizplus · Accepted Answer

A)The Court found that the Buyer had an insurable and special interest in the good,thus giving it standing to sue,stating,"Where a third party so deals with goods which have been identified to a contract for sale as to cause actionable injury to a party to that contract,a right of action against the third party is in either party to the contract for sale who has title to or a security interest or a special property or an insurable interest in the goods."
B)The Court found that the Buyer had an insurable and special interest in the good,thus giving it standing to sue,stating,"Where a third party so deals with goods which have been identified to a contract for sale as to cause actionable injury to a party to that contract,a right of action against the third party is in either party to the contract for sale who has title to or a security interest or a special property or an insurable interest in the goods."
C)The Court found that the Buyer had an insurable and special interest in the good,thus giving it standing to sue,stating,"Where a third party so deals with goods which have been identified to a contract for sale as to cause actionable injury to a party to that contract,a right of action against the third party is in either party to the contract for sale who has title to or a security interest or a special property or an insurable interest in the goods."
D)The Court found that the Buyer had an insurable and special interest in the good,thus giving it standing to sue,stating,"Where a third party so deals with goods which have been identified to a contract for sale as to cause actionable injury to a party to that contract,a right of action against the third party is in either party to the contract for sale who has title to or a security interest or a special property or an insurable interest in the goods."
E)The Court found that the Buyer had an insurable and special interest in the good,thus giving it standing to sue,stating,"Where a third party so deals with goods which have been identified to a contract for sale as to cause actionable injury to a party to that contract,a right of action against the third party is in either party to the contract for sale who has title to or a security interest or a special property or an insurable interest in the goods."

In the Text's Case of National Compressor Corp