A sold his house to B for an agreed price. Before it could be delivered it was hit by lightning and it was totally lost. State the effect of the loss.
A)A bears the risk of loss as he has not yet vested ownership to B.
B)A has to bear the risk of loss because he was in possession of the house at the time of loss.
C)B bears the risk of loss as an exception to the principle of res perit domino.
D)A has to bear the risk of loss since he was negligent.

Question

Quizplus · Accepted Answer

In a sale of specific goods, the risk generally passes to the buyer upon the conclusion of the contract, even if the goods have not yet been delivered, unless otherwise agreed. This is an exception to the principle of "res perit domino" (the thing perishes for the owner).

A Sold His House to B for an Agreed Price