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Allyssa Faith
on Nov 27, 2024

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Red Bev LLC contracts to buy two tons of strawberries from Sweet Fruits, Inc. The contract states that Sweet Fruits is required to ship the strawberries to Red Bev by Truck Transport Inc. The contract is

A) a bill of lading.
B) a destination contract.
C) a shipment contract.
D) a warehouse receipt.

Shipment Contract

A legal agreement specifying that the seller will arrange for goods' transportation to a specific destination, but the risk of loss passes to the buyer once the carrier takes possession.

Destination Contract

A contract specifying that the seller is responsible for delivering goods to a particular destination, with the risk of loss transferring upon delivery.

Bill Of Lading

A legal document issued by a carrier to a shipper, detailing the type, quantity, and destination of the goods being carried.

  • Realize the influence of Free On Board (F.O.B.) provisions on risk assumption and transportation expenditures in sales contracts.
  • Understand the nuances of shipment, destination, and warehouse receipts in contracts.
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Sophia AlexisDec 02, 2024
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