Discuss Who Has the Risk of Loss in the Absence

question 47

Essay

Discuss who has the risk of loss in the absence of a breach in a destination contract for the sale of goods.Also discuss the effect of an agreement of the parties.

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Definitions:

Operating Expenses

Expenses incurred in the process of earning sales revenue.

Incremental Effect

The impact of a particular decision on a company's finances, considering only the changes that directly result from the decision.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Fixed Expenses

Costs that do not change in total regardless of changes in the level of business activity or volume.