Frankfurt delivers two refrigerators to the warehouse of Duisburg who then issues a negotiable receipt undertaking the delivery of the refrigerators to "Frankfurt or bearer." Frankfurt entrusted the receipt to Leipzig for safekeeping only. Leipzig negotiated it, however, to Stuttgart who bought it in good faith and for value. Who is entitled to the delivery of the refrigerators? a. Frankfurt, since he is the real owner of the refrigerators. b. Stuttgart, since he is a purchaser in good faith and for value. c. Leipzig, since T entrusted the receipt to him. d. Duisburg, since he has as a warehouseman a lien on the goods.
Frankfurt delivers two refrigerators to the warehouse of Duisburg who then issues a negotiable receipt undertaking the delivery of the refrigerators to "Frankfurt or bearer." Frankfurt entrusted the receipt to Leipzig for safekeeping only. Leipzig negotiated it, however, to Stuttgart who bought it in good faith and for value. Who is entitled to the delivery of the refrigerators? a. Frankfurt, since he is the real owner of the refrigerators. b. Stuttgart, since he is a purchaser in good faith and for value. c. Leipzig, since T entrusted the receipt to him. d. Duisburg, since he has as a warehouseman a lien on the goods.
Chapter12: Nonrecognition Transactions
Section: Chapter Questions
Problem 18P
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Question
Frankfurt delivers two refrigerators to the warehouse of Duisburg who then issues a negotiable receipt undertaking the delivery of the refrigerators to "Frankfurt or bearer." Frankfurt entrusted the receipt to Leipzig for safekeeping only. Leipzig negotiated it, however, to Stuttgart who bought it in good faith and for value. Who is entitled to the delivery of the refrigerators?
a. Frankfurt, since he is the real owner of the refrigerators.
b. Stuttgart, since he is a purchaser in good faith and for value.
c. Leipzig, since T entrusted the receipt to him.
d. Duisburg, since he has as a warehouseman a lien on the goods.
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ISBN:
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Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT