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Terms in this set (54)

ROL does not necessarily pass with title. ROL is important because of insurance concerns.

Unless agreed otherwise, ROL passes to Buyer depending on whether delivery is with or without movement of the goods

Delivery With Movement of the Goods-Carrier Cases.
Shipment Contracts: Risk of loss passes to Buyer when goods tendered to Carrier. If goods damaged in transit, Buyer's bears risk of loss

Delivery With Movement of the Goods-Carrier Cases.
Destination Contracts. ROL passes to Buyer when goods tendered at contractually specified destination

Delivery Without Movement of the Goods.
Often goods are held by a bailee on behalf of the seller in a bailment arrangement.
Documents of title give bailee possession of goods and/or contracts to deliver them.
Examples: warehouse, trucking company.

Delivery Without Movement of the Goods.
Goods Held by Seller: Document of Title is generally not used.
If Seller is a merchant, risk of loss passes when buyer takes physical possession of goods. (ROL remains with seller until buyer takes physical possession.)

Delivery Without Movement of the Goods.
Goods Held by Seller: Document of Title is generally not used.
If Seller is a merchant, risk of loss passes when buyer takes physical possession of goods. (ROL remains with seller until buyer takes physical possession.)

When the Contract is Breached: generally breaching party bears risk of loss.
When Seller or Lessor Breaches.
Rejection - risk stays with seller.
Revocation of acceptance - risk passes back to seller to the extent that buyer's insurance does not cover the loss.

When the Contract is Breached: generally breaching party bears risk of loss.
When the Buyer or Lessee Breaches. Goods are identified, risk passes to buyer for a commercially reasonable amount of time after seller learns of the breach, to the extent that seller's insurance does not cover loss.