Which of the following statements is TRUE?

Question

Quizplus · Accepted Answer

The passing of property is important for insurance purposes because the risk of loss or damage usually passes with the property. This means that the party who owns the property at the time of the loss or damage is usually the one who bears the risk and may be entitled to make a claim under their insurance policy.

Note: The other statements are incorrect. B is incorrect because the Sale of Goods Act applies to contracts for the sale of goods, regardless of whether or not property has passed. C is incorrect because possession does not necessarily mean ownership. D is incorrect because the passing of property can affect the remedies available to a seller, such as the right to repossess the goods. E is incorrect because property can pass before payment is made, depending on the terms of the contract.

Which of the Following Statements Is TRUE