When the pricing term in a contract includes the costs of the goods and the costs of the insurance and freight,the buyer bears the loss of risk during transportation.

Question

Quizplus · Accepted Answer

If the pricing term in a contract includes the costs of the goods and the costs of the insurance and freight, it means that the seller is responsible for arranging for the transportation and insuring the goods during transit. Therefore, if any loss or damage occurs during transportation, the seller would be responsible for it and not the buyer.

When the Pricing Term in a Contract Includes the Costs