Brett boards her horse Charley at Dallas's Equestrian Stables. Brett sells the horse to Flem and tells Dallas, "I sold Charley to Flem.". Dallas says, "Okay.". That night, Charley is kicked in the head by another horse and dies. Who suffers the loss?
Flem suffers the loss of the horse. If a bailee—in this problem, Dallas—holds goods for a seller and the goods are to be de¬liv¬ered without being moved, the risk of loss passes when the bailee acknowledges the buyer's right to possess the goods. Dallas ac¬knowledged Flem's right to pos-sess Charley when he said, "Ok," to Brett's informing him of the sale.
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