Asked by Great Amazing on May 25, 2024

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a. What are the obligations of the seller under a shipment contract?
b. What are the obligations of the seller under a destination contract?

Shipment Contract

A contract in which the seller is obligated to send the goods to the buyer but is not responsible for loss or damage to the goods once they have been shipped.

Destination Contract

A legal agreement specifying that the seller of goods will bear the risk and expense until the goods are delivered to a specific location.

Seller Obligations

Refers to the responsibilities and duties a seller must fulfill as part of a sales contract, including delivering the goods or services as agreed.

  • Comprehend the difference between shipment and destination contracts and the obligations of the seller in both.
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AH
Allyson HernandezMay 28, 2024
Final Answer :
a. Under a shipment contract the seller is required to send the goods to the buyer, but the contract does not obligate the seller to deliver them at a particular destination. Under a shipment contract the seller is required to:
(1) deliver the goods to a carrier,
(2) make a contract for their transportation which is reasonable according to the nature of the goods and other circumstances;
(3) obtain and promptly deliver or tender to the buyer any document necessary to enable the buyer to obtain possession of the goods from the carrier; and (4) promptly notify the buyer of the shipment.
b. A destination contract requires the seller to tender delivery of conforming goods at a specified destination. The seller must place the goods at the buyer's disposition and give the buyer reasonable notice to enable him to take delivery. If the destination contract involves documents of title, the seller must tender the necessary documents.