Commercial law assignment

Passing of property and risk

Sanjit, is an owner of Soccer Kit.Com, a large company specialising in personalised football kits. He is currently expanding his business into Leicester and he just moved into the new premises, in the process he ordered the following goods:
• One hundred football polyester jerseys.
• Six clothing printing machines (weighting one tonne each).
• Five thousand fabric stencils.
Soccer Kit.Com ordered all the goods from Active Textile Ltd, a new business supplier and paid a 40% deposit on all of the items at the time of the order.
a) Active Textile Ltd. had prepared the football jerseys for shipment by placing them in the containers and attaching the address and invoice for the attention of Soccer Kit.Com. Unfortunately, shortly after Active Textile Ltd has gone into liquidation and the goods have never been dispatched. They still remain at the premises of Active Textile Ltd, in their shipment bay.
b) A week before going into liquidation Active Textile Ltd. informed Sanjit that the printing machines were ready for collection from their business premises. However, when Sanjit got there, all six machines were bolted onto the floor. He was unable to move them and decided to return another day with proper equipment. Unfortunately, before Sanjit managed to return, the warehouse was flooded and the machines became rusty and unusable as a result. Active Textile Ltd, claims that the machines were a property of Soccer, and therefore Sanjit should have insured the goods against the damage accordingly.
c) Two thousand stencils were delivered to Soccer Kit.Com at the time of Active Textile Ltd’s insolvency. However, it turns out that five hundred of the delivered stencils were dampened as a result of the flooding. The liquidator has also confirmed to Sanjit, that three thousand stencils matching the contract description, are still in the seller’s storage facility.
Advise Sanjit of Soccer Kit.Com on the relevant passage of property and risk issues.

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