Larry,a merchant seller,had contracted with Simon to buy welding equipment.The contract stipulated that Larry would pick up the equipment from Simon's warehouse on the 14ᵗʰ day from the date of the contract.Larry could not make the pick-up on the stipulated date and before he could do so on the 15ᵗʰ day,the warehouse and its contents were destroyed by arsonists.In this situation,who bears the risk of loss for the goods that were to be received by Larry?

Question

Quizplus · Accepted Answer

In contracts involving the sale of goods, the risk of loss typically transfers from the seller to the buyer when the buyer takes physical possession of the goods or when the goods are delivered according to the contract terms. Since Larry did not pick up the equipment on the agreed date, he did not take possession, and therefore, the risk of loss remains with him despite the unforeseen event of arson.

Larry,a Merchant Seller,had Contracted with Simon to Buy Welding Equipment