Question

Which of the following is an INCORRECT statement regarding the right to stop delivery of goods in​ transit? A. If the lessee repudiates the contract while the goods are in​ transit, the lessor has the right to stop delivery only if the delivery constitutes a​ carload, a​ truckload, a​ planeload, or a larger express or freight shipment. B. The lessor does not have the right to stop delivery in transit due to the​ lessee's breach of the lease​ agreement; instead, the lessor must deliver the goods to the lessee in spite of the​ breach, and then sue the lessee for damages. C. A lessor has the right to stop delivery of the goods in transit​ if, while the goods are in​ transit, the lessee repudiates the contract. D. A lessor has the right to stop delivery of the goods in transit​ if, while the goods are in​ transit, the lessee fails to make payment when due. E. A lessor who learns of the​ lessee's insolvency while the goods are in transit has a right to stop delivery of the goods in​ transit, regardless of the size of the shipment.

Answer 1

Answer:

B. The lessor does not have the right to stop delivery in transit due to the​ lessee's breach of the lease​ agreement; instead, the lessor must deliver the goods to the lessee in spite of the​ breach, and then sue the lessee for damages.

Explanation:

During the transit of goods, if the lessor learns of a breach of the lease agreement, he has every right to stop the delivery of the goods in transit by notifying  the goods carrier or bailee. Since the carrier of the goods reports directly to the lessor, once he receives instructions from the lessor to stop delivery of goods, and he still has sufficient time, the delivery should be stopped.

Once the goods are reclaimed, the lessor can then decide to sue to recover damages. He can also, decide to cancel the contract at that point