Smith and Roberson's Business Law 16th Edition by Richard Mann,Barry Roberts

Exercise 8

On May 10, the Apple Company, acting through one Brown, entered into a contract with Crane for the installation of a milking machine at Crane's farm. Following the enumeration of the articles to be furnished, together with the price of each article, the written contract provided: "This outfit is subject to thirty days' free trial and is to be installed about June 1." Within thirty days after installation the entire outfit, excepting a double utility unit, was destroyed by fire through no fault of Crane. The Apple Company sued Crane to recover the value of the articles destroyed. Explain who bears the risk of loss.