Pine Mills Inc. agrees to sell a certain quantity of plywood to Quality Lumber Company under a destination contract. Pine Mills must
A) allow Quality Lumber to reject the plywood for any reason.
B) deliver the plywood to a particular destination.
C) inspect the plywood before tendering its delivery.
D) place the plywood into the hands of Railway Transport, a carrier.

Question

Quizplus · Accepted Answer

A destination contract means that the seller is responsible for delivering the goods to a specific destination. Therefore, Pine Mills must deliver the plywood to a particular destination as agreed upon in the contract. The other options are not necessarily required under a destination contract. Quality Lumber may have the right to reject the plywood, but it would depend on the terms of the contract. Similarly, the inspection of the plywood before delivery and the carrier used are not explicitly required under a destination contract.