Hiram Is About to Agree to Sell a Specific Antique

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The Answer is Hiram is at risk. The parties intend to create an unconditional contract for the sale of specific goods that are in a deliverable state. Rule 1 therefore states that property will presumptively pass to Natasha as soon as the agreement is made. Consequently, if she later becomes bankrupt without paying the full price, Hiram may not be able to simply take his book back. Instead, he may be required to rely upon other remedies that are less effective.
To protect himself at the outset, Hiram should insert a retention of title clause into his contract with Natasha. Although Rule 1 states that property presumptively will pass to Natasha as soon as the contract is created, it generally is possible to displace the statute's default rules. A retention of title clause would allow Hiram to retain ownership of the book until the price is fully paid. Consequently, if Natasha becomes bankrupt before fully performing her obligations, Hiram will be able to simply take his book back.

Hiram Is About to Agree to Sell a Specific Antique

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