Which of the Following Is True of Destination Contracts

question 10

Multiple Choice

Which of the following is true of destination contracts?

• A)It requires a seller to turn the goods over to a carrier for delivery to the buyer.
• B)Both title and risk of loss pass to the buyer when goods are given to the carrier.
• C)Title and risk of loss pass to the buyer once the seller tenders goods at a place as per the contract.
• D)The seller bears no responsibility for seeing that the goods reach their destination.

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Definitions:

Negotiates

The process of discussing something formally to reach an agreement or compromise.

Pays

Refers to the act of giving money in exchange for goods, services, or to fulfill an obligation.

Representative Capacity

Acting on behalf of another person or entity, holding the authority to make decisions, enter agreements, or perform actions for them.

Holder In Due Course

A legal term for a party who has acquired a negotiable instrument in good faith and for consideration, and thus has certain protections against claims and defenses that could be raised against the original issuer.