When a buyer agrees to buy goods held by a bailee, unless otherwise ex?plicitly agreed, the risk of loss passes to the buyer when the price is paid.

Question

Quizplus · Accepted Answer

The risk of loss typically passes to the buyer when the buyer receives a negotiable document of title covering the goods or when the bailee acknowledges the buyer's right to possession of the goods, not necessarily when the price is paid.

When a Buyer Agrees to Buy Goods Held by a Bailee