A sales contract that requires the seller to send the goods to the buyer but not to a specifically named destination is known as a(n) ________.
A) shipment contract
B) destination contract
C) option contract
D) consignment contract

Question

Quizplus · Accepted Answer

A shipment contract requires the seller to send the goods to the buyer, but it does not specify a particular destination. This means that the seller fulfills their obligation once the goods have been shipped, and the risk of loss or damage transfers from the seller to the buyer at the point of shipment. In contrast, a destination contract requires the seller to deliver the goods to a specific destination designated by the buyer. An option contract is a type of contract that gives one party the right (but not the obligation) to buy or sell an asset at a predetermined price within a specified time frame. A consignment contract is a type of contract in which the owner of goods (the consignor) transfers possession of the goods to another person (the consignee) to sell the goods on the consignor's behalf.

A Sales Contract That Requires the Seller to Send the Goods