UCC

Question 1

On June 1, a seller agreed to sell an antique car to a buyer for $20,000, in a writing signed by both the seller and the buyer. At the time, the car was on display in a museum in a different city and was to be delivered to the buyer on August 1. On July 15, before the risk of loss had passed to the buyer, the car was destroyed by fire without fault of either party — Result?

Answer 1

the contract is avoided and each party is relieved of its respective obligation to perform

UCC § 2-613 provides that where goods identified at the time the contract was made are totally destroyed before the risk of their loss has passed to the buyer and without the fault of either party, the contract is avoided and each party is relieved of its respective obligation to perform.

Question 2

under a shipment contract, when does the risk of loss shift from the seller to the buyer?

Answer 2

when the seller duly delivered the goods to the third-party carrier.

(unless otherwise specified, all UCC contracts that involve a 3rd party carrier are classified as shipment contracts)

Question 3

As stated in UCC § 2-509(1)(b), under a destination contract, when does the risk of loss shift from the seller to the buyer?

Answer 3

when the goods are duly tendered to the buyer rather than when the goods are unloaded.