Reference no: EM133199823

Renovation Nation Pty Ltd (Company) sold bathroom and kitchen products. Due to financial difficulties Tristan, an administrator, has been appointed to take control of the company. At the time of his appointment as administrator the Company has 200 outstanding orders of a total value of $500,000.

The first category of stock (Category A) is stock that has been paid by the customers in full and has been allocated to the individual customers on Pronto, an online system used by the Company. The way the system worked was that no particular item of stock matching the description of the order would be allocated to the particular customer, rather if there was sufficient overall unallocated stock to meet the order then it would be marked online as allocated. Once marked as allocated on the online system the order would read "ready for pickup". On the rare occasion this could be overridden by the staff if an urgent order for pickup that same day came in. The stock items did not have serial numbers or other means of identifying individual items and items were not marked or physically separated by staff until the time of delivery or pick up.

The second category of stock (Category B) is also stock that has been paid for and allocated on the Pronto system. The difference is that there is insufficient stock to fulfill all the orders that had been over-allocated. Tristan needs to know whether title to those items has passed from the Company to the customers. Advise Tristan.