Fred Has 100 Tons of Stone in a Warehouse

question 115

Multiple Choice

Fred has 100 tons of stone in a warehouse.Barney agrees to purchase the stone from Fred.The contract states that Barney will pick-up the stone directly from the warehouse.Fred delivers a warehouse receipt to Barney for the stone.Before Barney is able to pick-up the stone,a tornado sweeps through and destroys the stone.Who has the risk of loss?

• A) Fred has the risk of loss because Barney did not pick-up the stone yet.
• B) The warehouse has the risk of loss because Barney did not pick-up the stone yet.
• C) Barney has the risk loss because the risk of loss was transferred when he received the warehouse receipt.
• D) Fred, the warehouse and Barney are equally responsible for the risk of loss.
• E) Fred and the warehouse are equally responsible for the risk of loss.

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Definitions:

Major Parts

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A professional who designs buildings and in many cases also supervises their construction.