Carl Agrees to Buy a Refrigerator from His Local Appliance

question 60

True/False

Carl agrees to buy a refrigerator from his local appliance store under an instalment plan,with eight monthly payments of $100.The store immediately,and properly,assigns the deal to a finance company for $750 in cash.After the refrigerator is delivered it utterly fails to operate,and Carl refuses to make his payments to the finance company.The finance company demands continued payments and indicates that any issue of faulty goods must be taken up with the store as a separate matter.In this regard,it is in Carl's best interest to continue to make his payments lest he be successfully sued for being in breach of the agreement himself.

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Definitions:

Conditional Sales Contract

A sales agreement that grants possession of an asset to the buyer, but withholds legal ownership until all terms have been fulfilled, typically payment in full.

Sale Itself

An actual transaction or agreement where a seller agrees to transfer ownership of goods or property to a buyer for a price.

Contingent on Approval

Depending on the granting of approval or permission by a relevant authority or party before proceeding or becoming effective.

Goods-In-Bailment Contract

A type of contract in which the purchased goods are in some kind of storage under the control of a third party, such as a warehouseman.