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John Contracts to Buy $600 of Medical Supplies from Tim

Question 67

Multiple Choice

John contracts to buy $600 of medical supplies from Tim.The contract states the shipping term is ex-ship.The goods are lost in transport.Tim argues that a shipment contract was created and therefore he is not responsible for the lost shipment.John argues that a destination contract was created and therefore he is not responsible.Who is right and why?


A) John is right because ex-ship creates a destination contract.
B) John is right because the UCC presumes that contracts are destination contracts and parties may not make agreements to the contrary.
C) Tim is right because ex-ship creates a shipment contract.
D) Tim is right because the UCC presumes that contracts are shipment contracts and parties may not make agreements to the contrary.
E) John and Tim are both incorrect because ex-ship means that the carrier is responsible for the lost goods.

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