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Contracts • Terms of the Contract
K#094
Legal Definition
Most contracts are shipment contracts, in which the seller completes their delivery obligation when they: (1) give the goods to a common carrier, (2) make reasonable arrangements for delivery, and (3) notify the buyer. The seller's delivery obligation is complete before actual delivery to the buyer. An example of such a contract would be, "FOB (city where seller/goods are)".
Plain English Explanation
When a seller uses a <common carrier>, you need to determine what type of carrier contract exists. There are two types: (1) a shipment contract, and (2) a destination contract. A seller's obligations to the buyer under a shipment contract are simply to competently ship the goods (which means taking them to a common carrier, like UPS, giving them the information to make the delivery, and letting the buyer know that the goods are on their way). Once a seller completes these basic steps, they have fulfilled their obligations.
Alternatively, a seller has more obligations under a destination contract, because rather than just being responsible to ship the goods, the seller has agreed to be liable until the goods arrive at their destination.
Alternatively, a seller has more obligations under a destination contract, because rather than just being responsible to ship the goods, the seller has agreed to be liable until the goods arrive at their destination.
Visual Aids
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