Question

Klint microsystems, a microprocessor manufacturer, was contracted by zeitar studios to manufacture specially designed microchips to be used in an audio engineering process. zeitar was to pay klint $300,000 as per the contract. klint decided to redesign its existing microchips and make them suitable for zeitar. while the finished microchips were being shipped via a carrier, klint was informed of zeitar's insolvency. klint cancelled the shipment before it was delivered. klint then resold the chips to another studio where it had to settle for $150,000, as the chips were now suitable for specific audio engineering processes only. what remedy did klint exercise when it stopped shipment to zeitar?

Answer 1

The remedy that Klint Inc exercised was "RIGHT TO STOP DELIVERY OF GOODS IN TRANSIT"

Since Klint came to know of Zeitar's bankruptcy, Klint decided not to make a total loss and stopped the shipment so that some of the cost could be recovered by selling to other third parties.