If a Sales Contract Requires the Seller to Ship the Goods

question 34

Multiple Choice

If a sales contract requires the seller to ship the goods by carrier and specifies the destination,the risk of loss passes to the buyer

• A) when the goods are properly delivered to the carrier.
• B) when the carrier tenders the goods to the buyer at the specified destination.
• C) when the contract is finalized.
• D) when the seller pays for the goods.

---

Definitions:

Lessor

The owner of a property or asset who leases it out to another party, known as the lessee, under a rental agreement.

Involuntary Bailment

A situation where an individual unintentionally comes into possession of someone else's property and has a legal duty to take care of it.

Bailor

The owner giving up possession of property in a bailment.

Bailee

The person acquiring possession of personal property in a bailment.