Question
Excel Co, a meat-packing company sold meat products to Silver Enterprises, the buyer. The buyer contracted the service of a trucking company, ABC Transports Ltd.,
Excel Co, a meat-packing company sold meat products to Silver Enterprises, the buyer. The buyer contracted the service of a trucking company, ABC Transports Ltd., to transport the goods to Toronto. The goods will then be delivered to a distributor, XY Ltd of which Silver Enterprises is the minority investor. The shipment will be paid in instalment scheme. Unfortunately, the buyer ran into financial troubles and will not be able to settle its financial obligation with the Excel Co. Excel Co initiates and arranges to resell the goods directly to XY Ltd. Excel Co argued that they have the right to resell the goods because they have the title as they retained certain documentation from the buyer until full payment is made. ABC Transports Ltd., who has not been paid of their service, brought an action before the court to stop the sale. The contract of sale is F.O.B point of shipping.
Who has the title to the goods? Does ABC Transport Ltd has legal right to stop the sale? State your reasons.
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