Which of the following is true of a contract in which the goods were destroyed, of no fault of the buyer or seller, before the title to goods passed to the buyer?
A) The buyer has to still pay for the destroyed goods.
B) The seller and buyer are excused from contractual obligations.
C) The buyer can successfully claim for replacements from the seller.
D) The seller is obligated to make a new shipment as the previous contract.

Question

Quizplus · Accepted Answer

If the goods have been destroyed before the title to the goods passes to the buyer, the risk of loss usually remains with the seller. In this case, both the seller and buyer are excused from their contractual obligations because the subject matter of the contract no longer exists. However, if the contract includes a clause that shifts the risk of loss to the buyer before the title to the goods passes, then the buyer may have to pay for the destroyed goods.

Which of the Following Is True of a Contract in Which