Buying Miniature Reproduction Statues: Who Bears the Loss?

Who bears the loss between the buyer and the museum in a scenario involving the purchase of a miniature reproduction statue? The loss falls on the buyer because the risk of loss shifted to the buyer when the museum received and accepted the payment.

Explanation:

The correct answer is option c) The loss falls on the buyer because the risk of loss shifted to the buyer when the museum received and accepted the payment.

Under the principle of risk of loss, the general rule is that the buyer assumes the risk of loss of goods once the seller has completed delivery. In this scenario, the museum received and accepted the payment, indicating completion of delivery. Therefore, the risk of loss shifted to the buyer. Additionally, the fact that the museum sent the wrong statue does not change the obligation of the buyer to bear the loss. The mistake in sending the wrong statue may give rise to a potential claim against the museum for their error, but it does not absolve the buyer from their responsibility to bear the risk of loss.

← The importance of investment in gdp calculation How to journalize transactions and prepare current liabilities section →

More Posts: