Which of the following is true of destination contracts?
A)It requires a seller to turn the goods over to a carrier for delivery to the buyer.
B)Both title and risk of loss pass to the buyer when goods are given to the carrier.
C)Title and risk of loss pass to the buyer once the seller tenders goods at a place as per the contract.
D)The seller bears no responsibility for seeing that the goods reach their destination.

Question

Quizplus · Accepted Answer

In a destination contract, the title and risk of loss pass to the buyer once the seller tenders goods at a place as per the contract. The seller is responsible for seeing that the goods reach their destination. Choice A is incorrect because it describes a shipment contract, not a destination contract. Choice B is incorrect because in a destination contract, title and risk of loss do not pass until the goods reach the agreed-upon destination. Choice D is incorrect because the seller does bear responsibility for ensuring that the goods reach their destination in a destination contract.

Which of the Following Is True of Destination Contracts