When goods are held by a bailee, risk of loss passes to the buyer when any one of the following occurs: a) The buyer receives a document of title for the goods; b) The bailee the buyer's right to the goods; c) The buyer receives a document of title, and the buyer has had to present the document to the bailee and demand the goods. If the bailee to honor the document, the risk of loss remains with the seller.

Question

Tristian Mueller

Business

19 March, 07:02

When goods are held by a bailee, risk of loss passes to the buyer when any one of the following occurs: a) The buyer receives a document of title for the goods; b) The bailee the buyer's right to the goods; c) The buyer receives a document of title, and the buyer has had to present the document to the bailee and demand the goods. If the bailee to honor the document, the risk of loss remains with the seller.

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Howard Knapp · Answer 1

risk of loss passes to the buyer when any one of the following occurs:

a) the buyer receives a negotiable document of title for the goods

b) The bailee agrees to the buyers right to possess the goods.

c) The buyer receives a nonnegotiable document of title and the buyer has a reasonable time to present the document to the bailee and demand the goods. If the bailee to honor the document, the risk of loss remains with the seller.

Explanation:

I do not think this question is correct but let me explain.

A bailee is someone who temporary possesses but not ownership of a good or property.

When goods are held by a bailee, risk of loss passes to the buyer when any one of the following occurs:

a) The buyer receives a negotiable document of title for the goods.

b) The bailee agrees to the buyers right to possess the goods.

c) The buyer receives a nonnegotiable document of title and the buyer has a reasonable time to present the document to the bailee and demand the goods. If the bailee to honor the document, the risk of loss remains with the seller.