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UCC Contracts QUESTION #5842
Question 1
A Seller tenders non-conforming goods to a Buyer under a shipment contract. The goods are destroyed in transit. Who bears the risk of loss?
  • The Buyer, because it is a shipment contract.
  • The Seller, because the goods were non-conforming.✔️
  • The Carrier, as the bailee of the goods.
  • The Buyer and Seller share the loss 50/50.
Correct Answer Explanation
Under UCC §2-510(1), if a tender fails to conform, the risk of loss remains on the seller until cure or acceptance.