The two types of contracts named for the point at which responsibility for loss is transferred from seller to buyer is:

Question

Quizplus · Accepted Answer

The two types of contracts named for the point at which responsibility for loss is transferred from seller to buyer are destination contracts and shipment contracts. In destination contracts, the seller assumes the risk of loss until the goods have arrived at the buyer's designated location, whereas in shipment contracts, the risk of loss transfers to the buyer as soon as the goods have been loaded onto the carrier. Options A and B are not correct because they do not accurately describe the types of contracts based on the transfer of risk. Option D is also incorrect because the seller does not always assume the risk of shipment; this may depend on the specific contract terms.

The Two Types of Contracts Named for the Point at Which