STEVEN decided to expand his art and framing gallery to include not just paintings, but sculptures as well. STEVEN bought his first sculpture, "The Blinking Man" from artist HEATHER Cho. STEVEN got HEATHER to part with her masterpiece for a $10,000.00 personal check that was later dishonored (and STEVEN never made good on that bounced check). STEVEN then set up the following deal with the ERICSON Art Museum concerning the sculpture: STEVEN would lease the sculpture to the ERICSON Art Museum for one year. The rental cost would be $9,000.00 for the first month and $99.00 for each of the eleven months thereafter. The $9,000.00 rent for the first month had to be paid in advance, and the museum would have a purchase option for $50.00 at the end of the lease term. The lease was terminable at will by either side at any time following the first month's payment.

ERICSON Art Museum, which was unaware of the bounced check, agreed in good faith to the terms of the above deal with STEVEN, made its initial $9000.00 payment and took possession of the sculpture. One month into its contract with STEVEN, ERICSON Art Museum made a contract with a different art gallery, K&L Gallery, to sell "The Blinking Man" for $20,000.00, "FOB Seller's Place." The cost of delivery from the ERICSON Art Museum to K&L Museum would be $300.00. Kim Lee had its own buyer lined up to purchase "The Blinking Man" for $25,000.00, "FOB Seller's Place," and K&L informed ERICSON of that fact before entering into the written sales contract with the new buyer.

After giving proper notice of delivery to K&L, ERICSON gave the sculpture to the carrier, SARAH, which reasonably and properly packed the sculpture for delivery to K&L. Unfortunately, through no fault of the carrier, a drunk driver crashed into the truck carrying the sculpture and, despite the careful packing and careful driving of the carrier, the sculpture was destroyed. Because the sculpture was destroyed, K&L avoided having to pay the $300.00 delivery charges, and K&L got a signed release from its own buyer in which that buyer agreed not to sue K&L.

Assume that none of the parties had insurance on the sculpture.

1. Describe the nature and extent of HEATHER's rights against STEVEN and the ERICSON Art Museum.
2. Please also describe and identify the nature and extent of STEVEN's rights against the ERICSON Art Museum.
3. Finally, describe the nature and extent of the rights of K&L against the ERICSON Art Museum. Discuss fully.

Dear Tutor, I would really appreciate it if you can answer to these questions, I am really having a hard time. Thank You.