Small Parts Manufacturing Co. entered into an agreement with Foremost Forging Co. to have an automated stamping press made for it. The agreement called for the construction of the press and its preparation for pickup by a carrier that Small Parts Manufacturing would designate, not later than March 1st. Payment terms were 50 percent payable at the time of signing the agreement, with the balance of the price payable on March 1st.

On February 25th, the construction of the press was complete. Foremost Forging informed Small Parts Manufacturing that the press was now ready for pickup by the transport company. The parties agreed that the press would be turned over to the carrier as soon as pickup could be arranged.

The press was placed in Foremost Forgings warehouse for the carrier to pick up. However, on February 26th, the press was destroyed when an unknown arsonist set fire to the warehouse building.

Discuss the rights (if any) and the liability (if any) of the parties in this case. Indicate the possible outcome of the case if legal action should be taken.