Kenneth purchased a car from his local dealership, Quartent Cars. However, since the car was not available in the color that Kenneth favored, the sales contract stipulated that Kenneth could immediately pick up the car of his preferred color from a nearby warehouse. The warehouse was owned by Mr. Henderson. Kenneth received the document of title for the car upon payment and presented it to Mr. Henderson a week later. But Mr. Henderson informed Kenneth that the car was damaged during a fire at the warehouse. If Mr. Henderson had refused the document of title provided by Kenneth, who would have borne the risk of loss to the car?

Question

Quizplus · Accepted Answer

Quartent Cars would have to bear the risk of loss as they were the ones who agreed to provide Kenneth with a car of his preferred color from a nearby warehouse. The fact that the car was located in Mr. Henderson's warehouse does not shift the risk of loss to him, as he was not a party to the sales contract. Additionally, Kenneth had already received the document of title, which is a clear indication that the car had been accepted by the buyer. Thus, if Mr. Henderson had refused the document of title, he would not have affected the allocation of risk of loss under the sales contract between Quartent Cars and Kenneth.

Kenneth Purchased a Car from His Local Dealership, Quartent Cars