Solved

PlastiCo Contracted to Buy 45,000 Litres of a Chemical from Natural

Question 8

Multiple Choice

PlastiCo. contracted to buy 45,000 litres of a chemical from Natural Chemicals Ltd. The chemical still had to be refined at the time the contract was made. Once it was refined, Natural had it pumped into 2,200-litre barrels, and loaded them onto a truck owned by Heavy Haulage Inc., a common carrier. The truck pulls out of Natural's yard, and it is struck by a falling boulder on the mountain road nearby and goes over the cliff. Almost all of the barrels are damaged, and the chemicals leak into the ground.


A) Since the loss of the chemicals was due to an act of God, the two parties will split the loss between them.
B) The loss will be Natural's since the barrels were not yet delivered to PlastiCo.
C) Since the chemical was unconditionally appropriated to the contract when it was loaded onto Heavy's truck, the loss is PlastiCo's.
D) Title to the chemicals was PlastiCo's from the moment the contract was formed and so PlastiCo. must bear the loss.
E) Since Natural had not yet notified PlastiCo. that the chemicals were being delivered, the risk of loss remains with the seller, Natural.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents