Asked by Aliyah Grant on May 12, 2024
Verified
In a contract with a merchant for which no delivery is required,risk of loss passes to the buyer when the buyer picks up the goods.
Risk of Loss
A legal term denoting the liability for damage to goods in a sales contract, determining who bears the risk if the goods are damaged or lost.
Merchant
A person who deals in goods of the kind sold in the ordinary course of business or who otherwise claims to have knowledge or skills peculiar to those goods.
- Understand how risk of loss is transferred in a commercial transaction.
Verified Answer
AP
Archil PipwalaMay 19, 2024
Final Answer :
True
Explanation :
If no delivery is required, the risk of loss passes to the buyer upon the buyer taking possession of the goods. This means that when the buyer physically picks up the goods from the merchant, they assume responsibility for any damage or loss that may occur.
Learning Objectives
- Understand how risk of loss is transferred in a commercial transaction.