2. Kiang, a sales representative working for Prat’s Appliances, sold a refrigerator to Pogany. After several weeks, Pogany changed her mind and wanted to repudiate the sales contract. Her argument was that a valid contract did not exist because Kiang did not possess title to the refrigerator and therefore could not convey title to her. Will Pogany be allowed to repudiate the sales contract?
3. Hughes purchased a new Lincoln Continental automobile from Al Greene, Inc., an authorized new car dealership. On the day of the sale, Hughes made a cash down payment and signed a purchase contract and an application for the title certificate. The understanding was that Hughes would take immediate possession of the car and return in a few days for new- car preparation and the installation of a CB radio. On the way home from the dealer, Hughes wrecked the car. The certificate of title had not yet been issued by the state. The buyer, Hughes, claimed that title had not yet passed since the title certificate had not yet been issued. Who must bear the loss?