Who is able to enforce the contract on behalf of the seller when the seller becomes bankrupt?

• A. The buyer
• B. The trustee in bankruptcy
• C. The seller's agent
• D. The court

Answer: (B)

When the seller becomes bankrupt, the contract for the sale of land becomes part of the bankrupt estate and vests in the trustee in bankruptcy. The trustee acts as the representative of that estate and has the authority to enforce the contract and complete the sale to the buyer, if appropriate, in order to realise assets for creditors. This means the trustee is the person who can lawfully carry out or enforce the contract on behalf of the seller’s estate.

The buyer cannot enforce the contract in the seller’s name after bankruptcy; the seller’s agent loses authority once bankruptcy begins; and the court would only intervene if a dispute is litigated, not as a standing enforcer for the seller.