Assume a buyer and seller execute a contract in which the seller is going to deliver a couch later in the day to the buyer.With a simple delivery contract in which the seller is a merchant,which party sustains a loss if,through no fault of either party,the couch is destroyed through fire prior to delivery?
A)Loss is proportioned 25% to the buyer and 75% to the seller
B)Loss is proportioned 75% to the buyer and 25% to the seller
C)Loss is proportioned 50% to the buyer and 50% to the seller
D)The seller
E)The buyer

Question

Quizplus · Accepted Answer

A)If the seller is a merchant,the risk of loss remains with the seller until the goods
are actually delivered to the buyer.
B)If the seller is a merchant,the risk of loss remains with the seller until the goods are actually delivered to the buyer.
C)If the seller is a merchant,the risk of loss remains with the seller until the goods are actually delivered to the buyer.
D)If the seller is a merchant,the risk of loss remains with the seller until the goods are actually delivered to the buyer.
E)If the seller is a merchant,the risk of loss remains with the seller until the goods are actually delivered to the buyer.

Assume a Buyer and Seller Execute a Contract in Which