1. Alice engaged Kelly as her agent to negotiate a contract for the purchase of a large quantity of china for her shop. Before Kelly completed his negotiations, Alice became insolvent and was declared bankrupt. Kelly completed the transaction for the purchase of the supplies some days later. What are the supplier’s rights?

2. The Acme Co. frequently sold goods through B Co., as its agent. The Acme Co. terminated the agency agreement, but failed to pick up goods at B Co.’s warehouse. B Co. later sold the goods to D Co. However, before D Co. took delivery, Acme Co. demanded return of the goods from B Co. Discuss.

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