Computer equipment has been purchased from a seller in the U.S. for shipment to the American embassy in Lebanon. The contract specifies delivery DES Beirut (Delivered Ex Ship). The ship docked in Beirut and has been there for a week awaiting unloading when guerilla activity breaks out and the port is shelled. Shelling damages the equipment. Whose equipment is it?

Question

Quizplus · Accepted Answer

Under the DES (Delivered Ex Ship) Incoterm, the seller fulfills their obligation to deliver when the goods are made available to the buyer on board the ship at the destination port. Therefore, once the ship docked in Beirut, the seller's responsibility ended, and the risk transferred to the buyer, in this case, the embassy. The occurrence of guerilla activity and subsequent damage to the equipment after the ship's arrival does not change the fact that the seller had already delivered the goods as per the contract terms.

Computer Equipment Has Been Purchased from a Seller in the U.S