Which of the following is true regarding a shipment contract?
A) It requires the seller to deliver conforming goods to a specific destination.
B) It requires the seller to ship goods conforming to the contract to a buyer via a carrier.
C) Such contracts require the seller to bear the risk of loss to the goods during their transportation.
D) The risk of loss does not pass until the goods are tendered to the buyer at the specified destination.
E) It requires the seller to deliver conforming goods to the buyer by use of the seller's own trucks.

Question

Quizplus · Accepted Answer

A shipment contract involves the seller shipping goods conforming to the contract to a buyer via a carrier. The risk of loss typically passes from the seller to the buyer upon delivery of the goods to the carrier. The seller's obligation is to deliver conforming goods to the carrier, not necessarily to a specific destination. The buyer is responsible for arranging for transportation from the destination specified in the contract. The seller may use their own trucks or a third-party carrier to fulfill their obligation under the contract.

Which of the Following Is True Regarding a Shipment Contract