Asked by Mckenna Grimm on Jul 05, 2024
Verified
At common law,the risk of loss for shipped goods falls upon the person or party who had "technical title" at the time the goods were damaged or destroyed.
Common Law
A body of law based on judicial decisions and precedents, rather than statutes, applicable in jurisdictions that follow the English legal tradition.
Technical Title
The formal ownership of property, often documented and recognized by law, regardless of the actual use or possession.
Risk of Loss
Pertains to the legal responsibility for the loss or damage of goods during a transaction, typically determined by the terms of the sale or agreement.
- Acquire knowledge on the critical nature of loss risk clauses and their implementation in diverse contexts.
Verified Answer
CG
Camila GonçalvesJul 11, 2024
Final Answer :
True
Explanation :
The common law placed the risk on the party who had technical title at the time of the loss during a commercial transaction.The Code rejects this approach and provides specific rules governing risk of loss that are designed to provide certainty and to place the risk on the party best able to protect against loss and most likely to be insured against it.
Learning Objectives
- Acquire knowledge on the critical nature of loss risk clauses and their implementation in diverse contexts.