Raw Material, Inc., and Sewn Fabric Corporation enter into a contract for a sale of muslin. The terms do not clearly indicate whether it is a destination or shipment contract. A court would most likely presume that it is
A) a bailment contract.
B) a destination contract.
C) a shipment contract.
D) a transportation contract.

Question

Quizplus · Accepted Answer

When the terms of a contract for sale do not indicate whether it is a destination or shipment contract, the Uniform Commercial Code (UCC) provides a presumption that it is a shipment contract. Therefore, in this scenario, the court would most likely presume that it is a shipment contract.