Question

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

Answer 1

Answer:

i. the buyer receives a negotiable document of title for the goods  

ii. The bailee acknowledges the buyer's right to possess the goods  

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

Explanation:

Sellers bear hazards when they are holding products for a purchaser, up until the purchaser claims the products. The vender likewise carries the danger of misfortune on exchanges that are deal on endorsement, in which a purchaser should authoritatively acknowledge the conveyed products before the deal is conclusive.

With any business exchange, there is a danger of misfortune. It's conceivable that either the purchaser or vendor in a transaction could bear the risk of disaster.