J is a retail apple seller that likes to have his â€œJ brandâ€ sticker on the apples before he sells them in his stores. K is a wholesale seller of apples. On Tuesday, J makes an agreement with K to buy a certain truckload of apples. Although the weight is not known, the price of the apples to be bought is agreed at $1 per pound. As part of the agreement, K also promises to put the â€œJ brandâ€ stickers on all of the apples. J will then come and pick them up and bring them to his stores.
That same evening, K phones up J to inform J that there are 450 pounds of apples. J replies in agreement that the total contract price is now known to be $450. J does an e-transfer of money to pay K for the apples, and asks K if the stickers have been put on the apples yet. K replies, â€œNot yet, but weâ€™ll do this on Wednesday morning.â€
Overnight and before Wednesday morning, there is a fire at Kâ€™s wholesale business and the 450 pounds of apples are destroyed. When J found out about this, J demanded that K provide alternative apples or refund Jâ€™s $450. K replies â€œSorry, but those were your apples that burned, not mineâ€.
Who must bear the loss for the destroyed apples, J or K?
Please answer it in IRAC format