Asked by Lungelo Cebekhulu on Sep 30, 2024
A contract requires Jim,a farmer,to ship 1,000 dozen eggs to Tim,a grocer.The shipment states "FOB Jim's Farm." If the eggs are lost or damaged:
A) Tim is still responsible for paying Jim for them.
B) Tim is no longer responsible for paying Jim for them.
C) Jim bears the risk of loss.
D) The parties split the risk of loss.
FOB Jim's Farm
A shipping term that stands for "Free On Board," indicating that the seller delivers the goods on board a vessel chosen by the buyer at the specified location, in this case, Jim's Farm.
Risk of Loss
a legal term referring to the concern about who bears the financial burden if goods are damaged or lost during a transaction, typically addressed in sales contracts.
Shipment States
Terms related to the sale of goods that determine when and under what conditions the risk of loss passes from the seller to the buyer during transit.
- Understand buyer’s rights in cases of defective goods and the importance of timely action.
Learning Objectives
- Understand buyer’s rights in cases of defective goods and the importance of timely action.