Having made it clear that she would not buy any tractor that had been involved in a fatal accident, and having been assured that the one she chose had never been in such an accident, Shelly bought a tractor from Cornfeldt's Farm Machinery for $15,000 under a conditional sales contract. Cornfeldt assigned the contract to Titewood Finance which gave proper notice of the assignment to Shelly. Shortly after, Shelly found out that this tractor had rolled over on another farmer and killed him, so she immediately returned the tractor to Cornfeldt and demanded a refund because of the misrepresentation. The salesman had known of the accident when he sold the tractor to her.
A) Shelly can get her money back but she has no right not to pay Titewood and must continue to do so.
B) Titewood took the assignment subject to the equities and any defence to a suit for non-payment launched by Cornfeldt would also be a defence to a suit for non-payment launched by Titewood.
C) Shelly can get her money back and does not have to pay Titewood.
D) Titewood can get its money back from Cornfeldt even though there was no misrepresentation to Titewood.
E) B, C and D.
Correct Answer:
Verified
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