Question
Johnson received a letter from Sanders, which stated, Sanders hereby places an order with you for fifty cases of Green Bottom Lettuce. Ship them C.O.D.
Johnson received a letter from Sanders, which stated, "Sanders hereby places an order with you for fifty cases of Green Bottom Lettuce. Ship them C.O.D." As soon as he received the letter, Johnson shipped the tomatoes to Sanders. While en route, the railroad car carrying the lettuce was wrecked. When Sanders refused to pay for the lettuce, Johnson started an action to recover the purchase price. Sanders defended on the ground that because the shipment was C.O.D., neither title to the tomatoes nor risk of loss passed until their delivery to Sanders. Who has a title? Who has the risk of loss? Explain
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Financial Accounting
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