Textiles,Inc. ,and Fab Fabric Corporation enter into a contract for a sale of muslin.The terms do not clearly indicate whether it is a destination or shipment contract.A court would most likely presume that it is
A)a delivery ex-ship.
B)a destination contract.
C)a shipment contract.
D)none of the choices.

Question

Quizplus · Accepted Answer

When the terms of a contract for the sale of goods do not specify whether it is a destination or shipment contract, the UCC (Uniform Commercial Code) provides a default rule. According to UCC, if the contract does not specify a place of delivery, it is presumed to be a shipment contract, which means that the seller is obligated to deliver the goods to a carrier for transportation to the buyer, and the risk of loss transfers to the buyer upon delivery of goods to the carrier. Therefore, in this case, a court would most likely presume that it is a shipment contract, and Fab Fabric Corporation would be responsible for arranging and paying for the transportation of muslin.