When the seller provides the buyer with a document enabling the pickup of goods held at an independent warehouse,the risk of loss passes to the buyer when the:
A) goods are picked up by the buyer.
B) contract of sale is signed.
C) buyer receives the document entitling it to pick up the goods.
D) buyer pays for the goods.

Question

Quizplus · Accepted Answer

The risk of loss passes to the buyer when they receive the document entitling them to pick up the goods. This is because the document serves as proof of ownership and possession. Until the buyer receives the document, the seller retains control of the goods and bears the risk of loss. Therefore, the answer is not A (goods picked up by buyer) or D (buyer pays for goods), as these events can occur before the buyer receives the document. The answer is also not B (contract of sale signed), as the signing of the contract does not necessarily trigger the transfer of ownership or possession.

When the Seller Provides the Buyer with a Document Enabling