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HomeCA FoundationbusinesslawSale of Goods — Formation of the Contract of Sale › Where goods are destroyed after the contract, wh…

Where goods are destroyed after the contract, who bears the loss differs because risk follows ownership. In a sale the loss falls on the ____ ; in an agreement to sell, on the ____.

Aseller; buyer
Bseller; seller
Cbuyer; buyer
Dbuyer; seller
Answer & Solution
Correct answer: D. buyer; seller
Risk follows property. In a sale the buyer (now owner) bears the loss; in an agreement to sell the seller still owns the goods and bears the loss.
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