Commentary

68.4 Credit periods

BAILMENT vol 3(1)
| Commentary

68.4 Credit periods

| Commentary

68.4 Credit periods

Thirdly, the fiduciary duty to account is arguably in conflict with the rationale of the seller’s credit period1. The purpose of extending a credit period is presumably to enable the buyer to ‘turn the goods around’ before payment and to use the proceeds in his general business activities. A fiduciary obligation of the sort alleged would frustrate that objective, because the buyer would be obliged to keep the proceeds in a separate account in a manner akin to trust moneys.

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