Reference no: EM133479449

Sami owns a car sales business. He usually sells new Fords which he buys from the manufacturer and second-hand cars bought in from private sellers. On Monday, the following events occurred at his business premises.

1. He gave Albert a test drive of a new Ford van which had just been delivered from the manufacturer that morning. Albert told Sami that he needed the van for his pizza delivery business. Albert paid half the price, and it was agreed that Albert would collect the van the next day and pay the rest of the price. Because the van was quite dirty after the test drive, Sami agreed to have the van washed before Albert came to collect it. Shortly after Albert left, Sami had the van washed.

2. Elena, a small farm shop owner, agreed to buy a second hand Mini which she had liked the look of when walking past the premises. Elena told Sami that she needed the Mini to make small deliveries locally. She paid the full price for the car, but as she was late for work, Sami agreed to drive the car to her flat early the next morning.

3. Jade, a local hairdresser, phoned Sami and asked him if he had any new Ford Fiestas for sale in order to run her mobile hair-dresser business. He told her that he had five on his forecourt which were exactly the same and that she could have any one of them if she wanted. She decided to buy one immediately and paid for it over the phone with her credit card.

On Tuesday, Sami woke up to find that a gas explosion had completely destroyed his premises and all of the cars except for one of the Ford Fiestas.

1. Advise Sami as to his potential rights and liabilities. AND

2. Advise the purchasers if, instead of a gas explosion, Sami had woken up on Tuesday to find himself insolvent.