Under the general rule in a sale of goods, who bears the risk of loss when there is a breach?

Under the general rule in a sale of goods, who bears the risk of loss when there is a breach?

• A. The carrier
• B. The breaching party
• C. The non-breaching party
• D. The seller

Answer: (B)

The key idea is how risk of loss is allocated when a sale of goods contract is breached. Under the UCC, if a party breaches, that breach carries with it the risk of loss for the goods to the extent of the deficiency. In other words, the party that failed to perform bears the risk of any loss or damage arising from that failure, because the buyer is entitled to conforming, tendered goods. So when there’s a breach, the breaching party bears the risk of loss. For example, if the seller ships nonconforming goods and they’re lost or damaged, the seller’s loss falls on the seller to the extent of the breach, and the buyer may recover damages for the breach. The other options don’t fit because the carrier isn’t automatically responsible for losses caused by the seller’s breach, and the non-breaching party isn’t automatically saddled with risk whenever a breach occurs; the burden falls on the party who breached.

The key idea is how risk of loss is allocated when a sale of goods contract is breached. Under the UCC, if a party breaches, that breach carries with it the risk of loss for the goods to the extent of the deficiency. In other words, the party that failed to perform bears the risk of any loss or damage arising from that failure, because the buyer is entitled to conforming, tendered goods. So when there’s a breach, the breaching party bears the risk of loss. For example, if the seller ships nonconforming goods and they’re lost or damaged, the seller’s loss falls on the seller to the extent of the breach, and the buyer may recover damages for the breach. The other options don’t fit because the carrier isn’t automatically responsible for losses caused by the seller’s breach, and the non-breaching party isn’t automatically saddled with risk whenever a breach occurs; the burden falls on the party who breached.