🤔
Contracts • Performance Under UCC
K#109
Legal Definition
In carrier cases, the price is due only at the time and place the buyer receives the goods. In a shipment contract, it's due when the goods are put in the hands of the carrier. In a destination contract, it's due when the goods reach the named destination.
Plain English Explanation
Figuring out when the price is due in contracts involving a carrier depends on the type of contract. Ultimately, the timing of payment depends on whether it’s a shipment contract or a destination contract—not just when the buyer receives the goods.
(2) Shipment Contracts: This is when the seller’s job is to get the goods to the carrier. The buyer has to pay when the goods are handed over to the carrier. The moment they’re loaded up and on their way, the price is due.
(3) Destination Contracts: Here, the seller is responsible for getting the goods all the way to the buyer’s location. The buyer doesn’t have to pay until the goods reach the named destination.
(2) Shipment Contracts: This is when the seller’s job is to get the goods to the carrier. The buyer has to pay when the goods are handed over to the carrier. The moment they’re loaded up and on their way, the price is due.
(3) Destination Contracts: Here, the seller is responsible for getting the goods all the way to the buyer’s location. The buyer doesn’t have to pay until the goods reach the named destination.
Visual Aids
Related Concepts
How may a buyer revoke acceptance of goods?
What are a buyer's rights to reject goods in an installment contract?
What does the "ability to cure" mean?
What factors limit a buyer's ability to reject goods?
What happens if a seller wishes to cure beyond the time obligated for performance?
What happens if a seller wishes to cure within the time obligated for performance?
What is the buyer's right of inspection?
What is the effect of a buyer accepting goods on his ability to reject them?
What is the perfect tender rule, and what is the consequence of less than perfect tender?
When is the price due in non-carrier cases?
When may the seller demand payment in an installment contract?
