Asked by Jasleen Sekhon on May 09, 2024
Verified
Which of the following is most important in determining who bears the risk of loss in a sale of goods contract?
A) The shipping terms
B) The agreement of the parties
C) One who has title to the goods
D) One who has possession of the goods
Risk Of Loss
The potential for an asset to decrease in value or become entirely worthless.
Shipping Terms
Conditions agreed upon by the buyer and seller regarding the delivery of goods, including the mode of transport, payment, and point of delivery.
- Understand the importance of shipping terms such as FOB and CIF and how they affect the responsibilities of the buyer and seller.
- Establish who is liable for the risk of loss in varied conditions of sale and shipment.
Verified Answer
FS
Fitri Soraya MarpaungMay 14, 2024
Final Answer :
B
Explanation :
Risk of loss under the UCC depends on (1)the terms of the parties' agreement, (2)the time that the loss occurs,and (3)whether one of the parties was in breach of contract when the loss occurred.
Learning Objectives
- Understand the importance of shipping terms such as FOB and CIF and how they affect the responsibilities of the buyer and seller.
- Establish who is liable for the risk of loss in varied conditions of sale and shipment.