Farmer Kate bought a truck load of processed goat manure at $1 per kilo from Organic Fertilizers Ltd. for use on her organic vegetable farm. She could not pay for it until it was ascertained how many kilos her truck would hold, so, while it was being put in her truck, she went to make some other purchases in the town. The owner of Organic wrote up the bill once the truck was full and left it at the counter with the clerk. Before Kate got back, the truck was hot-wired and stolen along with the manure. The truck was found the next day, but the manure was never seen again.
A) The loss is Kate's because title passed once the contract was formed.
B) The loss is Kate's because title passed once the manure was on her truck.
C) The loss is Kate's because title passed once the owner of Organic had established the price, since there was nothing left for him to do.
D) The loss is Organic's because title did not pass until Kate was notified that the manure had been weighed.
E) The loss is Organic's because, until Kate pays for the manure, title does not pass to her.
Correct Answer:
Verified
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