When will risk of loss pass from the seller to the buyer


Question: Hypothetical Question with Sample Answer. When will risk of loss pass from the seller to the buyer under each of the following contracts, assuming the parties have not expressly agreed on when risk of loss would pass?

1 A New York seller contracts with a San Francisco buyer to ship goods to the buyer F.O.B. San Francisco.

2 A New York seller contracts with a San Francisco buyer to ship goods to the buyer in San Francisco. There is no indication as to whether the shipment will be F.O.B. New York or F.O.B. San Francisco.

3. A seller contracts with a buyer to sell goods located on the seller's premises. The buyer pays for the goods and arranges to pick them up the next week at the seller's place of business.

4. A seller contracts with a buyer to sell goods located in a warehouse.

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Management Theories: When will risk of loss pass from the seller to the buyer
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