Multiple choice

In case of a sale, the risk of loss resulting from the insolvency of the buyer is borne by

  1. the seller

  2. the buyer

  3. both of these

  4. the insurance company
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In a sale, property and risk pass to the buyer upon delivery. However, if the buyer becomes insolvent after goods are delivered but before payment, the seller bears the risk of loss from this insolvency, as the buyer's inability to pay leaves the seller unpaid despite no longer owning the goods.

Keep practicing — related questions