Question

KrAmerica Jewelers sold a necklace to George on a layaway plan. George paid a portion of the price and agreed to make additional payments over six months. The necklace was to remain in the possession of KrAmerica until payment was fully made. A burglary occurred at KrAmerica and the necklace along with other items were stolen. KrAmerica argued that George must bear the risk of loss. George sought recovery of the full value of the necklace. Explain who shall prevail for each claim.

Answer 1

Answer:

- KrAmerica will bear the risk of the loss

- George will not get full recovery for the value of the necklace

Explanation:

George only made some payments for the necklace and he had not taken possession of it yet. So the risk for the loss is with KrAmerica since they are the current owners of the necklace.

George was only to take possession of the necklace when payment was completed.

On the other hand George is seeking full recovery of the value of the necklace.

He has only made a part payment on the necklace, so he is not entitled to get the full value of the necklace.

Only the amount he has paid will be refunded to him.