Asked by Dorshon Salmon on Mar 10, 2024
Verified
Which of the following terms would indicate a destination contract?
A) F.O.B. city of buyer.
B) F.O.B. city of seller.
C) C.I.F.
D) F.A.S. seller's port.
Destination Contract
A contract specifying that the sale of goods will be completed upon their arrival at a specified location.
F.O.B. City
Refers to "Free on Board" at a certain city, indicating that the seller is responsible for the goods until they are loaded onto a transport vehicle at a specified location.
- Distinguish between various types of contracts (shipment, destination) and the associated responsibilities of the parties involved.
Verified Answer
LB
Lexie BaileyMar 10, 2024
Final Answer :
A
Explanation :
A destination contract is indicated by terms that specify delivery to the buyer's location or a specific destination, hence "F.O.B. city of buyer" means the seller is responsible for the goods until they reach the buyer's city, fitting the definition of a destination contract.
Learning Objectives
- Distinguish between various types of contracts (shipment, destination) and the associated responsibilities of the parties involved.