Question

On Monday, Wolfe paid Aston Co., a furniture retailer, $500 for a table. On Thursday, Aston notified Wolfe that the table was ready to be picked up. On Saturday, while Aston was still in possession of the table, it was destroyed in a fire. Who bears the loss of the table?

A. Wolfe, because Wolfe had title to the table at the time of loss.
B. Wolfe, unless Aston breached the contract.
C. Aston, unless Wolfe is a merchant.
D. Aston, because Wolfe had not yet taken possession of the table.

Answer 1

In a typical sales transaction, Aston Co. would bear the loss of the table since Wolfe had not yet taken possession of it when it was destroyed in a fire. The most suitable answer is D. Aston.

Step-by-step explanation:

The question pertains to who bears the loss of the table that was destroyed in a fire while in the possession of the furniture retailer, Aston Co., after Wolfe had paid for it but before taking possession. The most suitable answer is D. Aston, because generally, the risk of loss in a sales transaction does not pass to the buyer until the buyer takes possession of the item.

Since Wolfe had not taken possession of the table when it was destroyed, Aston Co. bears the loss unless the contract specifically indicates otherwise or a statute or rule assigns the risk to the buyer even without possession.