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Regan received a letter from Chase, the material portion of which stated: "Chase hereby places an order with you for fifty cases of Red Top Tomatoes, $10 per case; ship them C.O.D." Promptly upon receipt of the letter Regan shipped the tomatoes (conforming goods) to Chase. While en route, the railroad car carrying the tomatoes was struck by lightning and was wrecked. Chase refused to pay for the tomatoes, and Regan brought a lawsuit against Chase to recover the purchase price. Chase defended on the ground that as the shipment was C.O.D., neither title to the tomatoes nor risk of loss passed until their delivery to Chase.
a. Which party had title to the tomatoes when they were destroyed? Why?
b. Which party had risk of loss to the tomatoes when they were destroyed? Why?
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