Abdullah purchases a couch from Murphy Interiors for $500.00 which includes delivery to his house the next day. During transit, the delivery truck gets into an accident and the fabric on the couch is damaged. Who bears the risk of loss in this situation?
A) Abdullah since risk of loss transfers to the buyer at the time of purchase.
B) Murphy Interiors if they were less than half way to Abdullah's house.
C) Abdullah if the delivery was over half way to Abdullah's house.
D) Murphy Interiors since the risk of loss transfers only upon delivery of a conforming good.

Question

Quizplus · Accepted Answer

The risk of loss in a transaction involving the sale of goods typically remains with the seller until the buyer takes possession of the goods. In this case, since the couch was damaged during delivery and before it reached Abdullah, Murphy Interiors bears the risk of loss. This is because the risk of loss transfers only upon delivery of the goods in a condition that conforms to the contract.

Abdullah Purchases a Couch from Murphy Interiors for $500