Letty is engaged in buying and selling cars. One day, Pablo approached her and offered to buy one of the cars in her inventory. Letty agreed to sell a Toyota Altis, with plate number XYZ 1234. They agreed for the delivery on a April 1, 2022. On the same day, Letty received information that Pablo would declare insolvency. She did not deliver the car. Is Letty justified in her action not to deliver the car?

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