Brown, located in Knoxville, contracted to buy sixty cases of Lovely Brand canne

Question

Brown, located in Knoxville, contracted to buy sixty cases of Lovely Brand canned corn from Clark in Toledo at a contract price of $1,250. Pursuant to the contract, Clark selected and set aside sixty cases of Lovely Brand canned corn and tagged them "For Brown." The contract required Clark to ship the corn to Brown via T Railroad, F.O.B. Toledo. Before Clark delivered the corn to the railroad, the sixty cases were stolen from Clark's warehouse. a. Who is liable for the loss of the sixty cases of corn, Brown or Clark? b. Suppose Clark had delivered the corn to the railroad in Toledo. After the corn had been loaded on a freight car, but before the train left the yard, the car was broken open and its contents, including the corn, stolen. As between Brown and Clark, who is liable for the loss? c. Would your answer in Question (b) be the same if this was an F.O.B. Knoxville contract, all other facts remaining the same?

Explanation / Answer

Soln:

a)Clark is liable for the loss.

b)Still Clark is liable for the loss.

c)No, as then the contract would have been between Brown and FOB Knoxville.

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