Question

If goods are identified at the time the parties entered into a contract and these goods are destroyed through no fault of the parties before risk passes to the buyer, which of the following is true

a) The parties are excused from performance.
b) The seller has seven (7) days within which to cure.
c) The seller has ten (10) days within which to cure.
d) The seller has thirty (30) days within which to cure.
e) The seller is responsible to the buyer for compensatory damages if the seller did not obtain insurance coverage to underwrite the loss.

Answer 1

If goods are destroyed before risk passes to the buyer, the seller typically has thirty days to fix the situation or compensate the buyer for the loss.

Step-by-step explanation:

If goods are identified at the time the parties entered into a contract and these goods are destroyed through no fault of the parties before risk passes to the buyer, the seller has thirty (30) days within which to cure. This means that the seller has the option to replace or repair the destroyed goods within thirty days. If the seller fails to do so, the buyer may be entitled to compensatory damages if the seller did not obtain insurance coverage to underwrite the loss.