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 from a nearby warehouse it was housed in.The warehouse was owned by Mr.Henderson.Kenneth received the document of title for the car upon payment and presented it to Mr.Henderson around a week later.But Mr.Henderson informed Kenneth that the car was damaged during a fire in 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 bear the risk of loss because they had possession of the car at the time the contract was formed and were responsible for delivering it to Kenneth. The fact that the car was stored in Mr. Henderson's warehouse does not shift the risk of loss to him unless he agreed to take on that risk. Since Kenneth had already received the document of title, the risk had passed from Quartent Cars to him upon payment.

Kenneth Purchased a Car from His Local Dealership, Quartent Cars