Merckx Cycle displayed five identical bicycles in its front window.Eddie looked at the five bikes and said,"I'll take one for $750.Pick one and set it aside for me.I'll collect it from you next week." He then paid the entire purchase price and left.The owner of the shop picked one of the five bikes and moved it to a backroom.Two days later,the bike was stolen.Eddie certainly suffers the burden of that theft because property and risk has passed to him.

Question

Quizplus · Accepted Answer

In this scenario, the risk of loss typically remains with the seller until the buyer takes possession of the goods, unless otherwise agreed. Since Eddie had not yet taken possession of the bike, the risk of loss had not passed to him.

Merckx Cycle Displayed Five Identical Bicycles in Its Front Window