Heavy Equipment Corporation leases six forklifts to Inland Refining Company,but as the forklifts are delivered,they are lost in an explosion.Under the UCC,the parties' rights and obligations with respect to the loss depend on the concept of

Question

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The parties' rights and obligations with respect to the loss depend on the concept of risk of loss. This is because risk of loss determines who bears the loss when goods are damaged or destroyed before the buyer accepts them. In this scenario, the forklifts were lost in an explosion before Inland Refining Company had a chance to accept them, so the question of who bears the loss arises based on the risk of loss provision in the UCC.

Heavy Equipment Corporation Leases Six Forklifts to Inland Refining Company,but