Falcon, by telegram to Southern Wool Inc ordered 30 bolts of cloth, first quality, 60% wool and factory in, Norwalk, Connecticut. Southern accepted the order and packed the bolts of cloth for shipment. In the process it discovered that one half of the bolts packed had been commingled with cloth which was 50% wool and 50% dacron. Since Southern did not have any additional 60% wool cloth, it decided to send the shipment to Falcon as an accommodation. The goods were shipped and later the same day Southern wired Falcon its apology informing Falcon of the facts and indicating that the 15 bolts of 50% wool would be priced at $15 a bolt less. The carrier delivering the goods was hijacked on the way to Norwalk. Under the circumstances, who bears the risk of loss?

a. Southern, since they shipped goods which failed to conform to the contract.

b. Falcon, since the shipping terms were F.O.B. Falcon's place of business.

C. Southern, because the order was not a signed writing.

d. Falcon, since Falcon has title to the goods.

Explanations Conclusion