Question

In: Operations Management

Seller received a letter from Buyer which stated, “Buyer hereby places an order with you for...

  1. Seller received a letter from Buyer which stated, “Buyer hereby places an order with you for fifty cases of goods to be received at my factory in Detroit.   Seller shipped the goods to Buyer by truck. While in route, the goods were stolen. When Buyer refused to pay, Seller sued for the purchase price. Buyer defended on the ground that neither title nor risk of loss passed until their delivery to Buyer. Who has the risk of loss? Explain. (In your answer use the terms: shipment contract, destination contract, common carrier)

Solutions

Expert Solution

The risk of loss lies with the seller. The reason being the letter from Buyers clearly states that the Buyer has ordered for fifty cases of goods to be delivered to their factory in Detroit. Thus, the freight is in the Seller's scope. Hence the insurance and the damage or loss of goods during transportation is the responsibility of the seller, and not the buyer. The contract made is destination contract in the above case.

keosha answered 2 years ago
Next > < Previous

Related Solutions

Create a flow chart of a letter of credit transaction. There will be a buyer, seller,...
Create a flow chart of a letter of credit transaction. There will be a buyer, seller, issuing bank, correspondent bank, foreign freight forwarder, customhouse broker in the buyer’s country and the shipper (air or water). The seller starts by making an offer to a buyer who either accepts the term of sale or asks for different terms. The buyer then goes to the issuing bank and so forth.
Buyer and Seller entered into a written agreement for Buyer to purchase real property, which property included a home, from Seller.
 Buyer and Seller entered into a written agreement for Buyer to purchase real property, which property included a home, from Seller. Under the terms of the purchase agreement, the risk of loss "shall remain with Seller until delivery of title." The purchase agreement was entered into on May 15 and called for closing on June 1, though the agreement did not say that time was of the essence. Seller chose this date for closing, in part, because that was the...
A buyer purchases goods from an online seller. The goods will be delivered from the seller...
A buyer purchases goods from an online seller. The goods will be delivered from the seller to the buyer under a shipment contract. The title to the goods will pass from the seller to the buyer when... (a) seller delivers the goods to the carrier (b) goods arrive at the buyer's stetted address (c) buyer takes actual possession of the goods (d) buyer receives a receipt from the seller (e) buyer pays the seller for the goods
A buyer purchases goods from an online seller. The goods will be delivered from the seller...
A buyer purchases goods from an online seller. The goods will be delivered from the seller to the buyer under a shipment contract. The title to the goods will pass from the seller to the buyer when Select one: a. seller delivers the goods to the carrier b. goods arrive at the buyer's stated address c. buyer takes actual possession of the goods d. buyer receives a receipt from the seller e. buyer pays the seller for the goods
What are the 3 questions that a buyer or seller must answer yes to in order...
What are the 3 questions that a buyer or seller must answer yes to in order to be considered a merchant
On January 2, 2020, Seller sends Buyer a letter offering to sell an Andy Warhol painting...
On January 2, 2020, Seller sends Buyer a letter offering to sell an Andy Warhol painting (described in the letter) for $ 500,000. According to the letter, the seller must receive buyer’s acceptance no later than January 10, 2020. On January 6th, buyer (who wants the Warhol painting for his personal collection) decides to accept the offer and prepares a letter which states, "I accept your January 2, 2020 offer to sell the rare postage stamp (as described in the...
When goods transported from the seller to the buyer by a third party carrier, the time when the risk of loss passes from the seller to the buyer is determined by:
When goods transported from the seller to the buyer by a third party carrier, the time when the risk of loss passes from the seller to the buyer is determined by:(a) the contract's shipping terms (b) the buyer's insurance policy (c) the seller's insurance policy (d) when the title of goods passes from seller to buyer
Is a contract for the sale of real estate assignable by the buyer if it provides for credit from the seller to the buyer?
Corey sold his property to Greer, who assigned the contract right to Bob. The original contract of sale provided for an extension of credit by Corey to Greer and did not require a total cash payment at the time of closing. Is a contract for the sale of real estate assignable by the buyer if it provides for credit from the seller to the buyer? Explain.
You will represent either the Purchaser (Acme, Inc.)or the Seller (I.M. Seller). Draft a letter...
You will represent either the Purchaser (Acme, Inc.)or the Seller (I.M. Seller). Draft a letter to your client explaining anylegal details of the contract that you feel that your client should beaware of and should understand. Prepare your client for the realestate closing by telling your client what items should be madeavailable for the closing date. Post your client letter.
The clause below was written by the seller. You are the buyer. Rewrite it so it...
The clause below was written by the seller. You are the buyer. Rewrite it so it is to your advantage. Delivery; Title; and Risk of Loss. Unless otherwise stated in Exhibit A, the Seller shall deliver the Goods FOB the Seller’s facility and title to and risk of loss of the Goods will pass to the Buyer upon such delivery by the Seller. Any stated delivery dates are approximate. The Seller will not be liable for any losses, damages, penalties,...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT