Juan bought a lawn mower at Raija's garage sale. He gave her a cheque for $100 and explained that he would collect the lawn mower later the same afternoon when he had use of his friend's pickup truck. Juan then asked Raija to leave the lawn mower near her garage. When Juan came to collect the lawn mower two hours later, he discovered that it had been stolen from the place where he had told Raija to leave it. Which of the following statements is TRUE?
A) Property and risk did not pass to Juan because he had not taken possession of the lawn mower.
B) Juan is entitled to a refund of $100 because he is not required to pay for a stolen lawn mower.
C) Property and risk did not pass to Juan unless Raija cashed his cheque before the theft occurred.
D) Since the transaction dealt with used goods, the Sale of Goods Act does not apply and it is therefore unnecessary to determine if property passed.
E) Even if the transaction occurred in a jurisdiction that considers some oral contracts to be unenforceable, the agreement between Juan and Raija did not have to be evidenced in writing because the price had already been paid.
Correct Answer:
Verified
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