A obtained a loan from B. To secure the payment of the obligation, A delivered the warehouse quedans to B and authorized him to sell the sugar in case of default. The warehouse and the sugar were burned. Who bears the loss?
A)B bears the loss because he became the owner of the sugar when the quedans were delivered to him.
B)B because of the principle of res perit domino.
C)By reason of the principle of res perit domino A bears the risk of loss.
D)B because of the constructive delivery of the sugar.

Question

Quizplus · Accepted Answer

The principle of "res perit domino" means that the loss is borne by the owner. In this case, A remains the owner of the sugar until the debt is paid or default occurs, so A bears the loss.

A Obtained a Loan from B