A seller contracted to sell lumber to the buyer.The contract was a shipment contract and the goods were to be shipped by common carrier.The lumber was destroyed by fire before the common carrier delivered the lumber to the buyer.Which of the following statements best describes this situation?

Question

Quizplus · Accepted Answer

In a shipment contract where the goods are to be delivered by a common carrier, the risk of loss passes to the buyer once the goods are delivered to the carrier. Therefore, in this situation, the risk of loss passed to the buyer when the goods were delivered to the common carrier, even though the goods were destroyed by fire before they could be delivered to the buyer.

A Seller Contracted to Sell Lumber to the Buyer