Kasper Bought a Truckload of Gravel from Gita

question 69

Multiple Choice

Kasper bought a truckload of gravel from Gita.The parties agreed that the price would be at least $500.Kasper therefore paid that amount later the same day.He promised to pay the remainder (which the parties estimated to be $200) after Gita weighed the gravel in order to determine its exact price.Gita returned with the truckload of gravel to her supply yard,weighed the gravel,and determined that the total contract price should be $675.Unfortunately,the gravel was stolen before Kasper actually took possession of it.Which of the following statements is TRUE?

• A)Risk passed to Kasper because he paid part of the price.
• B)Although property passed to Kasper when he paid part of the price,the risk remained with Gita until she weighed the gravel.
• C)Kasper will bear the burden of the theft if Gita notified him of the total price after the theft occurred.
• D)Property passed to Kasper as soon as the contract was created because the agreement was concerned with specific goods that were already in a deliverable condition.
• E)The Sale of Goods Act applies to the facts even though the subject matter of the contract is gravel,which is a substance that must be taken from land.

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Definitions:

Mission Statement

A short statement of an organization's purpose, identifying the scope of its operations in product and market terms.

Core Purpose

The fundamental reason for an organization's existence, beyond just making money.

Corporate-Level Strategy

Involves decision-making at the highest level of a company, focusing on the overall scope and direction of the organization.

Strategic Planning

The process of defining a business's strategy, directions, and making decisions on allocating its resources to pursue this strategy.