Assume a Buyer and Seller Execute a Contract in Which

question 71

Multiple Choice

Assume a buyer and seller execute a contract in which the seller is going to deliver a couch later in the day to the buyer. With a simple delivery contract in which the seller is a merchant, which party sustains a loss if, through no fault of either party, the couch is destroyed through fire prior to delivery?

• A) The seller
• B) The buyer
• C) Loss is proportioned 50% to the buyer and 50% to the seller
• D) Loss is proportioned 75% to the buyer and 25% to the seller
• E) Loss is proportioned 25% to the buyer and 75% to the seller

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Definitions:

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