When is a delivery not a delivery?: Risk of loss and the UCC

Consider these facts:  A seller of manufactured homes delivers a home to the buyer's lot, but a month later, before the seller completes the finishing work inside the home and before it's ready for occupancy, a storm causes extensive damage.  Who is responsible to pay for repairs - the seller or the buyer?

In Lucas v. Berry, the Oregon Court of Appeals decided last week that the seller had to pay to repair the manufactured home because the risk of loss had not yet passed to the buyer at the time of the storm.  The parties' contract required the seller to deliver and set up the home, but didn't address when the buyer would become responsible for damage to it.  The court turned to Article 2 of the Uniform Commercial Code, governing sale of goods, for the answer.  ORS 72.5090(1)(b) states that the risk of loss passes to the buyer when the goods are duly tendered so as to enable the buyer to take delivery.  Even though the home had been delivered to the buyer's lot, it had not yet been "delivered" as that term is used in the UCC.  The seller had contracted to provide a home fully ready for occupancy, and until that happened there was no delivery to the buyer and the risk of loss remained with the seller.