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PlastiCo. contracted to buy 10,000 gallons of a chemical from Natural Chemicals Ltd. The chemical still had to be refined at the time the contract
PlastiCo. contracted to buy 10,000 gallons of a chemical from Natural Chemicals Ltd. The chemical still had to be refined at the time the contract was made. Once it was refined, Natural had it pumped into 500-gallon drums and loaded them onto a truck owned by Heavy Haulage Inc., a common carrier. The truck pulls out of Natural's yard, and it is struck by a falling boulder on the mountain road nearby and goes over the cliff. Almost all of the barrels are damaged and the chemicals leak into the ground. a. Since the loss of the chemicals was due to an act of God, the two parties will split the loss between them b. The loss will be Natural's since the barrels were not yet delivered to Plastico. c. Since the chemical was unconditionally appropriated to the contract when it was loaded onto Heavy's truck, the loss is PlastiCo's * d. Title to the chemicals was PlastiCo's from the moment the contract was formed and so PlastiCo. must bear the loss e. Since Natural had not yet notified PlastiCo. that the chemicals were being delivered, the risk of loss remains with the seller, Natural.
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