1. Law
  2. Other
  3. scenario three abid is a chef from singapore who recently...

Question: scenario three abid is a chef from singapore who recently...

Question details

Scenario Three Abid is a chef from Singapore who recently moved to Melbourne. He is keen to open up a Café in Richmond. He finds a great place to lease on Bridge Road. He signs a lease with the property owner, Jerry. Abid cannot afford to buy the kitchen equipment (i.e. dishwasher; industrial cooker; coffee machine etc.) outright so he gets a loan from Shonk Bank for $100,000. A term of the loan agreement was to register the equipment on the Personal Property Securities Register. Registration occurred. The equipment was then delivered to Abid. Abid opens the café but it doesn’t do very well. In fact, it is a terrible failure. After a few weeks, he is unable to keep up the payments to Jerry and other suppliers. After another month of not receiving his rent, Jerry changes the locks on the premises and says that until his rent is paid in full, he has complete ownership and an interest over everything inside. Advise Shonk Bank on what their position is with regard to their interest in the kitchen equipment versus Jerry’s interest IRAC. (25 Marks)

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution