Leo buys a bicycle from his brother, Mike, who is a used car dealer. Mike agrees to keep the bike at his house until Leo picks it up. A tree falls on Mike's garage and destroys the bike. The loss is suffered by
A) Leo and Mike.
B) Leo only.
C) Mike only.
D) neither Leo nor Mike.

Question

Quizplus · Accepted Answer

Since the agreement was for Mike to keep the bike until Leo picks it up, the responsibility for the bike was still with Leo. Therefore, the loss is suffered by Leo only, as he had not yet taken physical possession of the bike.

Leo Buys a Bicycle from His Brother, Mike, Who Is