Which of the following is true of a destination contract containing a "no-arrival, no-sale" clause?

Question

Quizplus · Accepted Answer

A "no-arrival, no-sale" clause means that the seller bears the risk of loss during transportation, so option A is true. Option B is incorrect because the seller is not responsible for replacing lost goods; they are only obligated to ensure that the goods arrive at the destination. Option C is incorrect because destroyed goods are not mentioned in relation to the "no-arrival, no-sale" clause. Option D is also incorrect because the risk of loss does not necessarily pass once the shipping has been arranged; it depends on the terms of the contract.

Which of the Following Is True of a Destination Contract