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3 votes
Even when title to goods passes to the buyer, the seller may continue to have n insurable interest in them.

a) True
b) False

1 Answer

7 votes

Final answer:

The statement is true; a seller may retain an insurable interest in goods even after the title passes to the buyer if they still bear a risk of loss.

Step-by-step explanation:

The statement 'Even when title to goods passes to the buyer, the seller may continue to have an insurable interest in them.' is true. Title refers to the legal right to own and possess the goods, and once it passes to the buyer, the buyer becomes the legal owner. However, the seller may retain an insurable interest in the goods until they are delivered to the buyer and, in some cases, even beyond delivery if the seller has some risk of loss associated with the goods. An example of this could be when the goods are being transported to the buyer, and the risk of damage during transit is still borne by the seller.

answered
User Mbert
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