If the goods that are the subject of a sale are in the possession of a bailee and are to be delivered without being moved, when does the risk of loss pass to the buyer?
A) When the bailee is orally notified of the sale.
B) At such time as the buyer receives the negotiable document of title.
C) At such time as the contract of sale was entered.
D) When the seller tenders a nonnegotiable document of title to the bailee.

Question

Quizplus · Accepted Answer

The risk of loss passes to the buyer when the buyer receives the negotiable document of title, as it signifies the transfer of control over the goods from the seller to the buyer.

If the Goods That Are the Subject of a Sale