When goods are held by a bailee, risk of loss passes to the buyer when any one of the following occurs:
a) the buyer receives a document of title for the goods;
b) the bailee the buyer's right to the goods;
c) the buyer receives a document of title, and the buyer has had to present the document to the bailee and demand the goods. if the bailee to honor the document, the risk of loss remains with the seller.

i. the buyer receives a negotiable document of title for the goods  

ii. The bailee acknowledges the buyer's right to possess the goods  

iii. The buyer receives a nonnegotiable document of title, and the buyer has had a reasonable time to present the document to the bailee and demand the goods. If the bailee refuses to honor the document, the risk of loss remains with the seller

Explanation:

Sellers bear hazards when they are holding products for a purchaser, up until the purchaser claims the products. The vender likewise carries the danger of misfortune on exchanges that are deal on endorsement, in which a purchaser should authoritatively acknowledge the conveyed products before the deal is conclusive.

With any business exchange, there is a danger of misfortune. It's conceivable that either the purchaser or vendor in a transaction could bear the risk of disaster.

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