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

Since Kenneth received the document of title upon payment, the transfer of ownership and risk of loss passed from Quartent Cars to Kenneth. Therefore, Quartent Cars would be the one responsible for any losses incurred before the transfer of ownership. Mr. Henderson's refusal of the document of title would not affect the transfer of ownership or the distribution of risk, as ownership and risk had already passed to Kenneth.

Kenneth Purchased a Car from His Local Dealership,Quartent Cars