What occurs if the goods are sold to collect debts?

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Multiple Choice

What occurs if the goods are sold to collect debts?

Explanation:
When goods are sold to collect debts, the captain gets priority over other creditors. This is due to the maritime law principle that recognizes the captain's right to retain possession of the goods as security for debts incurred during the voyage. In the event of a sale, the captain typically retains a priority claim to the proceeds from the sale, allowing them to be compensated first before other general creditors can make claims against those proceeds. This prioritization arises because the captain has a unique position in maritime commerce, where they may incur expenses or liabilities that directly relate to the care and transportation of the goods. Therefore, the law tends to protect the captain's interests by giving them superior rights to recover debts incurred while managing the vessel and its cargo.

When goods are sold to collect debts, the captain gets priority over other creditors. This is due to the maritime law principle that recognizes the captain's right to retain possession of the goods as security for debts incurred during the voyage. In the event of a sale, the captain typically retains a priority claim to the proceeds from the sale, allowing them to be compensated first before other general creditors can make claims against those proceeds.

This prioritization arises because the captain has a unique position in maritime commerce, where they may incur expenses or liabilities that directly relate to the care and transportation of the goods. Therefore, the law tends to protect the captain's interests by giving them superior rights to recover debts incurred while managing the vessel and its cargo.

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