If the Seller Has Made a Substantial Beginning in Manufacturing

question 44

True/False

If the seller has made a substantial beginning in manufacturing customized goods,then an oral contract may be enforceable regardless of the amount of money involved in the contract.

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Definitions:

Carrier

In telecommunications, an entity that provides services for transmitting data and communications; in transportation, a company responsible for transporting goods or passengers.

FOB

Stands for Free On Board, a term used in international shipping indicating that the seller bears the cost of loading goods onto a shipping vessel, while the buyer pays for transportation and insurance.

Shipment Contract

A sales agreement where the seller is obligated to send the goods to a specific destination, and the risk of loss passes to the buyer when the goods are delivered to the carrier.

Risk of Loss

The responsibility for the loss of goods during shipment, transfer, or at any time before the completion of a sale, typically determined by contract terms.