Under a destination contract,if a lessor is a merchant,the risk of loss passes to a lessee when the lessee takes physical possession of the goods.

Question

Quizplus · Accepted Answer

In a destination contract, the risk of loss transfers from the seller to the buyer/lessee when the goods arrive at the specified destination. However, if the lessor is a merchant, the risk of loss transfers to the lessee when the lessee takes physical possession of the goods. This is because the merchant-lessor is considered to have more expertise and control over the goods than a non-merchant seller.

Under a Destination Contract,if a Lessor Is a Merchant,the Risk