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Source Risk of Loss Complete Delaware Bar Exam Topic Index List Matched to this deck.

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0 tracked cards Delaware Essays

Seller sells 5,000 bags of rice that are stored in a public warehouse. The goods will not be moved immediately. The warehouse is a bailee and has issued documents of title.
Which statement best describes when risk may pass to Buyer?

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Risk passes automatically when the goods are identified, even if the bailee refuses to acknowledge Buyer. Risk passes when Seller sends a written delivery direction but the bailee promptly rejects Buyer's right to possession. Risk may pass when Buyer receives a negotiable document of title, the bailee acknowledges Buyer's right to possession, or Buyer receives a qualifying nonnegotiable document or written delivery direction after a reasonable time to present it. Risk passes only when Buyer pays the warehouse storage fees.

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