On October 1,Jackie enters into an agreement with Vanessa to purchase 75 handbags.The contract entered into between Vanessa and Jackie is a destination contract.On October 15,Vanessa identifies the 75 handbags that will be sent to Jackie.On October 20,Vanessa ships the handbags.On October 25,Jackie receives the shipment.When does Vanessa's insurable interest terminate?
A) on October 1
B) on October 15
C) on October 20
D) on October 25
E) Vanessa never had an insurable interest.

Question

Quizplus · Accepted Answer

Vanessa's insurable interest terminates when Jackie receives the shipment on October 25, as it is a destination contract, meaning the risk of loss passes to Jackie upon delivery.

On October 1,Jackie Enters into an Agreement with Vanessa to Purchase