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Hypo: On 1/15, B contracts with S to buy a cow for $80. B pays $25. K provides that B is to get delivery of the cow when she pays the balance of the purchase price. S becomes insolvent on 1/22. Does B have a legal right to obtain the cow by paying the balance of the purchase price?

Answer: Yes, under B's recovery of an identified, paid for good from a S who becomes insolvent within 10 days.

My questions: What happens to the $25? Is the 10 days calculated from the K date or the date payment is made?

desperate4lawschool wrote:Hypo: On 1/15, B contracts with S to buy a cow for $80. B pays $25. K provides that B is to get delivery of the cow when she pays the balance of the purchase price. S becomes insolvent on 1/22. Does B have a legal right to obtain the cow by paying the balance of the purchase price?

Answer: Yes, under B's recovery of an identified, paid for good from a S who becomes insolvent within 10 days.

My questions: What happens to the $25? Is the 10 days calculated from the K date or the date payment is made?

a) The $25 is applied to the purchase of the cow (seller keeps it, or his creditors eventually get it). The buyer must tender the remaining $55 balance.

b) Insolvency must occur within 10 days of the initial payment.

See UCC 2-502.

thanks!!