Question

Karen picked up the goods that she had stored in Brad's warehouse, promising to pay Brad the following week. Several months passed, and Karen still had not paid Brad for storing the goods. Brad claimed that he had a warehouser's lien on the goods that were stored in her warehouse and was legally able to obtain the goods and sell them to pay the debt off. Was Brad correct? Why or why not?

Answer 1

Yes, definitely Brad is correct by saying this. As Karen promised to pay Brad by failed to fulfill her promise and not paid warehouse's charges to Brad for several months, Brad has the right to lien and taking possession of the goods kept in the warehouse. But before doing that Brad needs to write a notice to Karen regarding his intension of selling the goods as she is not paying off the debt. The notice must contain the description of the goods as well as the brief information regarding the due amount.

Brad can sell the goods to public auction by stating the purpose of selling the goods so to keep everything clear. This way Brad can make the money without the help of Karen. This is a kind of remedy warehousers get according to the warehouse laws. Hence, Brad is correct and has the legal right to take possession of the goods kept in warehouse.

Hope this helps :)