A seller contracted to sell lumber to the buyer.The contract was a destination contract and the goods were to be shipped by common carrier.The lumber was destroyed by fire before it was delivered to the buyer.Which of the following statements best describes this situation?

Question

Quizplus · Accepted Answer

In a destination contract, the seller is responsible for delivering the goods to a specific destination. Until the goods are delivered, the seller bears the risk of loss. In this case, since the lumber was destroyed by fire before it was delivered to the buyer, the risk of loss remains on the seller until the goods are actually delivered to the buyer. Therefore, option C is correct. Option A is incorrect because in a destination contract, the seller bears the risk of loss until the goods are delivered. Option B is incorrect because the risk of loss remains on the seller until the goods are actually delivered to the buyer, not when they are delivered to the common carrier. Option D is incorrect because a document of title is not relevant in this situation - it is the delivery of the goods that triggers the passing of risk.

A Seller Contracted to Sell Lumber to the Buyer