Question

Kacey purchases custom windows from Custom Windows, Inc., and wants to ensure that the goods are shipped by common carrier and that title does not pass until the windows are tendered to her address. The contract should specify that it is a: a. destination contract. b. shipment contract. c. warehouse contract. d. carrier contract

Answer 1

A. Destination Contract

Step-by-step explanation:

A destination contract is a contract or an agreement between the seller and the buyer of products. The contract is such that the risk of loss is stated explicitly that until the buyer takes delivery of the goods at his agreed destination, then the risk of loss is to be borne by the seller.

The agreement is based on the knowledge that it is the responsibility of the seller to get his goods to the buyer and until that is done, any risk such as loss of goods or destruction of goods are to be paid for by the seller.

A destination contract should be therefore specified by Custom Windows Inc which indicates that any form of loss or risk that might occur before the goods get to Kacey will be borne by the company.