A famous designer enters into a contract with a boutique store for the delivery of certain clothing valued at $20,000.The boutique sells $10,000 worth of the merchandise within a few months.The remaining merchandise is destroyed within the store,through no fault of the boutique owner.What does the boutique owe the designer?

Question

Quizplus · Accepted Answer

The boutique owes the designer the full contract price of $20,000 because the risk of loss had passed to the boutique once they took possession of the merchandise. The destruction of the remaining merchandise does not absolve the boutique of its obligation to pay the full contract price.

A Famous Designer Enters into a Contract with a Boutique