Reference no: EM133211767

Ace manufacturing Ltd agreed to manufacture and sell 5000 chairs to a convention centre. The contract contained detailed specifications for the chairs, and provided that the purchase price of $200000 would be paid in two equal instalments: one-half when the contact was signed and one-half when the convention centre was notified that the chairs were ready to be picked up.

The contract said nothing about when ownership of the chairs would transfer to the buyer. The convention centre paid the first installment when the contract was signed. The chairs were manufactured by Ace and were in Ace's warehouse when a serious fire destroyed the warehouse and all the chairs. Ace had not yet notified the Convention centre that the chairs were ready for pick-up, because the person who ordinarily makes such calls had been away from work due to illness. Ace has demanded full payment for the chairs from the Convention centre. The convention centre has refused to pay the balance and has asked for the refund of the first installment it paid. Has title to the chairs passed from Ace to the convention centre?

Does the convention centre have to pay the balance of the purchase price? Can the Convention centre obtain a refund for the amount it has already-said?