Question

A seller shipped goods to a buyer by common carrier, using a shipment contract. when the carrier arrived at the buyer's location, the buyer refused to accept the goods unless the driver unloaded them inside the buyer's warehouse. the driver refused and the goods were subsequently damaged. who bears the risk of loss

Answer 1

The answer to this item lies in the situation. It is said that if the problem is silent or does not mention any details on the specific terms of the shipment contract or agreement between the parties, then this contract must be considered Freight on Board Destination (FOB Destination). This FOB Destination is defined as a shipping term which states that the legal title along with the risk of bearing the loss will stay with the seller until the goods reach the location of the buyer. In the actual scene, the actual sale of the goods and ownership changes hand from seller to buyer upon the destination of the goods. In this sense, this detail is important as well because both parties will know when the amounts will be entered in the accounting records and what treatment shall be given to the upon delivery and transit.