Asked by Johnny Reyes on Jun 20, 2024
Verified
Risk of loss cannot pass from seller to buyer unless the goods are identified to the contract.
Risk of Loss
The potential for an investment or transaction to result in a decrease in value or financial loss.
Identified
Recognized or established as being a particular entity or thing.
Contract
A legally binding agreement between two or more parties that outlines rights and duties towards one another.
- Gain insight into the times and ways in which title and risk of setback transfer from the vendor to the buyer or leaseholder.
Verified Answer
PD
Pharmacist DanyalJun 24, 2024
Final Answer :
True
Explanation :
The risk of loss in a sales transaction generally does not pass from the seller to the buyer until the goods are identified to the contract, as identification is a prerequisite for allocating risk between the parties.
Learning Objectives
- Gain insight into the times and ways in which title and risk of setback transfer from the vendor to the buyer or leaseholder.