In New York, risk of loss for leased goods generally rests with whom?

• A. Lessor
• B. Lessee
• C. Bank
• D. Manufacturer

Answer: (A)

The main idea here is how risk of loss is allocated in a lease under New York law. In a standard lease, the owner of the goods—the lessor—carries the risk of loss unless the lease agreement. specifically shifts it to the lessee. The lessor remains the holder of title and bears the financial consequences if the goods are damaged or destroyed before the lessee takes possession or if the contract doesn’t assign risk otherwise. The lessee has possession and use, but that possession doesn’t automatically transfer risk of loss to the lessee unless the lease contract says so or the parties’ arrangement explicitly allocates it. Because the typical default is that the owner bears the risk, the correct answer is the lessor.