When goods have been damaged without the fault of either the seller or buyer, if the risk of loss is placed on the seller, the seller has no right to recover the purchase price from the buyer and has no right to the return of the damaged goods.

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), if the goods are damaged or lost without fault of either party before the risk of loss passes to the buyer, the contract is avoided, meaning the seller cannot demand payment nor is the buyer entitled to the goods. However, if the risk of loss has passed to the buyer, the buyer still owes the purchase price even if the goods are damaged or lost, unless otherwise agreed. The statement does not specify when the risk of loss passes, making it too broad to be accurate in all situations.

When Goods Have Been Damaged Without the Fault of Either