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King company to disavow the contract

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Reference no: EM131115183

Amanda ordered 50 personalized shirts from King Company. After the shirts were specially imprinted, but before they were mailed, Amanda called King Company to disavow the contract. The next day the sweatshirts were stolen. Who bears the risk of loss? BE CAREFUL ABOUT THIS QUESTION!

1. Amanda must pay the entire purchase price, because she breached the contract

2. King will have to bear the entire loss, because it had not yet mailed the shirts

3. Amanda must bear the entire loss, because the shirts were identified to the contract

4. King must first seek payment from its insurance carrier, and then collect from Amanda for any amount not covered by its insurance.

Reference no: EM131115183

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