21-1 Risk of Loss

Mackey orders from Pride one thousand cases of Greenie brand peas from lot A at list price to be shipped F.O.B. Prides city via Fast Freight Lines. Pride receives the order and immediately sends Mackey an acceptance of the order with a promise to ship promptly. Pride later separates the one thousand cases of Greenie peas and prints Mackeys name and address on each case.The peas are placed on Prides dock, and Fast Freight is notified to pick up the shipment. The night before the pickup by Fast Freight, through no fault of Prides, a fire destroys the one thousand cases of peas. Pride claims that title passed to Mackey at the time the contract was made and that risk of loss passed to Mackey when the goods were marked with Mackeys name and address. Discuss Prides contentions. (See Risk of Loss.)

Answer this using the IRAC writing Format

I-Describe the issue at hand (the question being asked)

R-Describe the rule that is applicable in this situation

A-Apply the rule to the facts of yor situation

C-Draw a conclusion