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Scenario Four Your client, Basel Pty Ltd is a furniture retailer based in Melbourne. Late last year, Basel placed an order with the Chinese based

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Scenario Four Your client, Basel Pty Ltd is a furniture retailer based in Melbourne. Late last year, Basel placed an order with the Chinese based manufacturer for $6million AUD worth of furniture. At the request of the Chinese manufacturer, Basel placed the order with Xin Pty Ltd. Xin Pty Ltd is wholly owned and controlled by the Chinese manufacturer. The agreement is that $3million AUD is to be paid now and the balance to be paid upon delivery. Basel deposits $3million AUD into Xin's account at the Melbourne Branch of Westpac. Xin and the Chinese entity both told Basel that they will let them know when the goods will be ready for shipping but expect delivery in about 3 months. 6 months elapse and the goods have still not been delivered. Basel then asks Xin for a refund of their money. Xin refuses. Basel then commences legal proceedings against Xin for breach of contract. The litigation is expected to take 2 years. Basel knows Xin is just a small shopfront for the Chinese parent company and is unlikely to have assets other than Basel's deposit that would satisfy the damages sought of $3million AUD. Advise Basel on the action to take to maximise the chances that Xin will be able to satisfy a judgment debt if the court orders. 25 Marks

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