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In a destination contract, risk of loss passes to the buyer or lessee when the goods are delivered to the carrier.
Destination Contract
A contract in which the seller is required to ship the goods by carrier and deliver them at a particular destination. The seller assumes liability for any losses or damage to the goods until they are tendered at the destination specified in the contract.
Risk of Loss
The potential for an investment or venture to result in financial loss, often evaluated as part of investment strategies and decision-making.
Carrier
A company or individual that undertakes the professional conveyance of goods or people.
- Understand the difference between shipment contracts and destination contracts, and how they affect the risk of loss.
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Learning Objectives
- Understand the difference between shipment contracts and destination contracts, and how they affect the risk of loss.
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