Harold's department store sells Carl a stove. When does the risk of loss transfer to Carl in a simple delivery contract?
A) When Carl pays for the stove.
B) When Carl uses his credit card.
C) When Carl takes possession of the stove.
D) One day after goods are identified to the contract
E) When Harold's gives Carl a receipt of payment.

Question

Quizplus · Accepted Answer

In a simple delivery contract, the risk of loss transfers to the buyer, in this case, Carl, when he takes possession of the stove. This is because, until the buyer actually takes possession, the seller is responsible for the goods.

Harold's Department Store Sells Carl a Stove