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Question 1 2 pts Fabric manufacturer Orb Weavers, entered into an arrangement with Black Sheep, wool producers, whereby Orb Weavers would collect 20 bags of
Question 1 2 pts Fabric manufacturer Orb Weavers, entered into an arrangement with Black Sheep, wool producers, whereby Orb Weavers would collect 20 bags of wool from Black Sheep with 30 days to pay for it and title was not to pass until payment was made. On 10 April 2020, Orb Weavers collected the 20 bags. On 20 April, the manager of nearby processing plant Moral Fibres, realised that it was short of stock of wool that it needed to meet an upcoming order. The manager asked if he could by 8 bags of wool to collect immediately from Orb Weavers's shed with 7 days to pay. Orb Weavers agreed. Moral Fibres collected the wool that afternoon. Moral Fibres is now unable to pay Orb Weavers as it hasn't been paid by its customers. Orb Weavers cannot pay Black Sheep and has been placed into liquidation. Black Sheep wants to seize the wool from Moral Fibres. Orb Weavers' liquidator claims that s 23 rule 1 of the Sale of Goods Act applies in this case because that section provides that in a contract for the sale of specic goods in a deliverable state the property in the goods passes to the buyer when the contract is made, and it is immaterial whether the time of payment or the time of deliver, or both, be postponed, and therefore title passed to Orb Weavers on entry into the contract. Is the liquidator correct? 0 No. 0 Yes
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