Asked by Demia Kelly on Jun 20, 2024
Verified
When a bailee is holding goods that are to be delivered under a contract without being moved, risk of loss passes when the bailee acknowledges the buyer's right to the goods.
Bailee
One to whom goods are entrusted by a bailor.
Risk Of Loss
The potential for an asset to decrease in value, or for an investment to not yield the expected return.
Acknowledges
Recognizes the presence, validity, or truth of something, often formally.
- Comprehend when risk of loss passes in various scenarios involving goods under a contract.
Verified Answer
CM
Colin Matthew DavisJun 23, 2024
Final Answer :
True
Explanation :
Under the Uniform Commercial Code (UCC), when goods are held by a bailee and are to be delivered without being moved, the risk of loss passes to the buyer when the bailee acknowledges the buyer's right to possess the goods. This is typically done through a document of title or by the bailee's acknowledgment.
Learning Objectives
- Comprehend when risk of loss passes in various scenarios involving goods under a contract.