Woodridge USA Properties, L.P., bought eighty-seven commercial truck trailers from Southeast Trailer Mart, Inc. (STM). Gerald McCarty, an independent sales agent who arranged the deal, showed Woodridge the documents of title. The documents did not indicate that Woodridge was the buyer. Woodridge then asked McCarty to sell the trailers, and within three months, they were sold. McCarty did not give the proceeds to Woodridge, however. Woodridge—without mentioning the title documents—asked STM to refund the contract price. STM refused. Does Woodridge have a right to recover damages from STM? Explain.
Woodridge USA Properties, L.P., bought eighty-seven commercial truck trailers from Southeast Trailer Mart, Inc. (STM). Gerald McCarty, an independent sales agent who arranged the deal, showed Woodridge the documents of title. The documents did not indicate that Woodridge was the buyer. Woodridge then asked McCarty to sell the trailers, and within three months, they were sold. McCarty did not give the proceeds to Woodridge, however. Woodridge—without mentioning the title documents—asked STM to refund the contract price. STM refused. Does Woodridge have a right to recover damages from STM? Explain.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Woodridge USA Properties, L.P., bought eighty-seven commercial truck trailers from Southeast Trailer Mart, Inc. (STM). Gerald McCarty, an independent sales agent who arranged the deal, showed Woodridge the documents of title. The documents did not indicate that Woodridge was the buyer. Woodridge then asked McCarty to sell the trailers, and within three months, they were sold. McCarty did not give the proceeds to Woodridge, however. Woodridge—without mentioning the title documents—asked STM to refund the contract price. STM refused.
- Does Woodridge have a right to recover damages from STM? Explain.
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