Asked by Brandon Pimentel on Jun 28, 2024

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Which of the following is a shipment contract?

A) Ex-ship.
B) F.O.B. place of shipment.
C) No arrival, no sale.
D) Express F.O.B.

Shipment Contract

A legal agreement specifying that the seller will bear the risk of loss or damage to the goods until they are delivered to the carrier.

Ex-Ship

A term from international trade indicating that the seller's responsibility ends once the goods are available for unloading from the ship at the destination port.

F.O.B.

A shipping term indicating that the seller is responsible for the cost of loading goods onto a vessel, with the buyer assuming the risk and transportation cost once onboard.

  • Differentiate among the different kinds of contracts (shipment, destination) and the respective obligations of the participating parties.
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Verified Answer

MF
Maria Fillieta S.K.Jun 29, 2024
Final Answer :
B
Explanation :
In a shipment contract, the seller is required to send the goods to a carrier and make a reasonable contract for their transportation. The risk of loss passes to the buyer when the goods are duly delivered to the carrier. "F.O.B. (free on board) place of shipment" indicates that the seller fulfills their obligation once the goods are placed on board the ship at the specified location, making it a shipment contract.