Case Problem Analysis: Title, Risk, and Insurable Interest

Mickey Grocers ordered one thousand cases of Granger brand canned peas from a particular canning process $($called lot A$)$ at a particular price from Hermann's Farm. The peas were to be shipped to F$.$O$.$B$.$ Hermann's Farm's city via Quick Freight Lines. Hermann's Farm recelved the order and immediately sent Mickey an acceptance of the order with a promise to ship within a week. Hermann's Farm separated the one thousand cases of Granger peas and printed Mickey's name and address on each case. The peas were placed on Hermann's Farm's dock, and Quick Freight was notified to pick up the shipment.

The night before the pickup by Quick Freight, through no fault of Hermann's Farm's, a fire destroyed the one thousand cases of peas. Hermann's Farm claimed that title passed to Mickey at the time the contract was made and that risk of loss passed to Mickey when the goods were marked with Mickey's name and address.

Apply It: Title, Risk, and Insurable Interest

Total points: $-110$

Attempts left: $2$

Identifying the Facts and Issues

Under the Uniform Commercial Code $($UCC$),$ before the title and risk of loss pass from the seller to the buyer, the goods must select answer $-$ and must select answer $-$ The Granger peas select answer $-$ In existence and select answer $-$ Identified to the contract. This is true because select answer $-,$ and the contract was formed when select answer $-$

Title to the peas select answer when the contract was formed because

select answer

Mickey and Hermann's Farm when title and risk of loss would pass. When there is no agreement about the transfer of title and risk of loss, the courts will look to the select answer in the contract.

This contract addressed shipment as select answer $-$ These terms indicate that this contract is a select answer $-$ contract. Under this type of contract, risk of loss should have passed to the buyer, Mickey, select answer $-$