Exam 21: Transfer of Title and Risk of Loss

a.What is an insurable interest? At what point in a sales transaction does the buyer get an insurable interest? b.is the buyer the only one who has an insurable interest in the goods? Is it possible for both the buyer and the seller to simultaneously hold an insurable interest? Explain.

Goods that have been entrusted to a merchant may be sold by that merchant even when the merchant has been told not to sell the goods, and when a merchant sells such goods to a buyer in the ordinary course of business, that buyer has title that is superior to the title of the original owner who entrusted them to the merchant.

Louella purchases a steam cleaner from Alden for $120.She must believe Alden is the owner of or has the authority to sell the cleaner in order to receive the protection of a good faith purchaser.

Title to existing, identified goods can pass whenever the parties agree it will pass.

When one party breaches the sales contract, the Code places the risk of loss on that party.

A sale exists after the buyer takes:

When goods have been damaged without the fault of either the seller or buyer, if the risk of loss is placed on the seller, the seller has no right to recover the purchase price from the buyer and has no right to the return of the damaged goods.

Under the CISG:

In Robinson v.Durham , the court found:

At common law, the risk of loss or damage to goods identified under a contract of sale falls upon:

A(n) __________ is a delivery of possession of personal property to an agent for sale by the agent.