What protection the law provides for a seller where a buyer becomes insolvent.

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LA31710 Commercial Law 1 Assessed Essay

Student No 001813779

S Co wishes to sell widgets to B Co. B Co uses widgets in its manufacturing process and also sometimes, itself, sells widgets. S Co is concerned that it will have to make the sale to B Co on credit and that B Co's financial position is not very strong. S Co has been advised that it can protect itself from B Co becoming insolvent before it pays for the widgets by means of a retention of title clause provided that it requires B to store the widgets it, S Co, supplies separately from those from other sources.

Advise S Co as to the extent to which that advice is sound.

This essay is concerned with what protection the law provides for a seller where a buyer becomes insolvent. It is section 19 (1) of the Sales of Goods Act 1979 that lays a varied foundation for protection for the buyer by means of fulfilling certain obligations. In sum it provides that if there is a contract for the sale of either specific goods or goods that are subsequently appropriated to the contract the property in the