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C is corrent because provided there is no agreement to the contrary and neither party is in breach, risk of loss to goods which are held in a warehouse for delivery without being moved will pass at the time the negotiable document of title is properly negotiated to the buyer. If the document of title is nonnegotiable, then the risk of loss passes a reasonable time after the buyer receives the document. Where there is no document of title representing the goods, risk of loss will pass once the warehouseman acknowledges the buyer’s right to the goods.
A is incorrect because the payment of the contract does not affect the transfer of the risk of loss.
B is incorrect because risk of loss is not affected by the time of the formation of the contract.
D is incorrect because the risk of loss passes to the buyer upon proper negotiation of a negotiable document of title. In this situation, the proper negotiation occurred on June 13 and the risk of loss transferred to Spark. The date of delivery does not affect the transfer of the risk of loss.