Nocking Furnace Co. sold a commercial furnace to Glond Manufacturing Inc. Glond was to take delivery of the furnace from Nocking's factory. On November 12, 2007, Glond paid for the furnace in full, and Nocking provided a bill of sale to Glond stating that it had transferred title to Glond. Glond asked to delay delivery until December 1, however, so that it could prepare its building for installation of the new furnace. On November 29, 2007, Nocking's building caught on fire and the furnace was destroyed. Because title had passed to Glond on November 12, Glond must bear the risk of loss on this furnace.

Question

Quizplus · Accepted Answer

Although title passed on November 12, we have no indication that the parties contracted about passage of risk of loss. Since there was no breach of contract involved here, the risk of loss stays on the merchant seller which Nocking is) until the buyer receives delivery.