EZ Equipment Corporation leases six forklifts to Fresco Refining Company,but as the forklifts are delivered,they are lost in an explosion.Under the UCC,the parties' rights and obligations with respect to the loss depend on the concept of

Question

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The UCC uses the concept of "risk of loss" to determine which party bears the burden of the loss in a commercial lease agreement. In this case, since the forklifts were lost in an explosion during delivery, the risk of loss would likely fall on either the lessor (EZ Equipment Corporation) or the lessee (Fresco Refining Company) depending on when the risk of loss shifted according to the terms of their lease agreement.

EZ Equipment Corporation Leases Six Forklifts to Fresco Refining Company,but