Mike sold his car to Beth,who was to pick the car up at Mike's house by 12:00 noon on September 1.Mike was at his house waiting for Beth but she was late.In fact,when Beth arrived she discovered Mike's home and the car destroyed by a fire that started at 1:00 p.m.The risk of loss falls on:

Question

Quizplus · Accepted Answer

According to the common law, the risk of loss passes to the buyer when the seller tenders the goods. In this case, Mike was ready, willing, and able to tender the car at 12:00 noon, which means that he had fulfilled his obligation as a seller. Therefore, the risk of loss falls on Beth since she had not taken possession of the car at the time of the loss. The UCC has specific provisions for the risk of loss, but since this is a case of a sale under common law, the UCC does not apply.

Mike Sold His Car to Beth,who Was to Pick the Car