Which party is generally considered responsible under a destination contract when goods are damaged during shipping?

Which party is generally considered responsible under a destination contract when goods are damaged during shipping?

• A. The buyer
• B. The seller
• C. Both parties equally
• D. No responsibility is assigned

Answer: (B)

In a destination contract, the seller retains the responsibility for the goods until they reach the buyer's specified destination. This principle affects liability for loss or damage during transit. If the goods are damaged while in transit, it is the seller who is responsible because they are expected to handle the shipping and ensure that the goods arrive in the agreed-upon condition. The seller’s obligations include taking care of the logistics to deliver the products safely to the buyer's designated location. This provision provides the buyer with increased security and mitigates risk, as the buyer will not bear the loss if something happens to the goods before they arrive. In contrast to a shipment contract, where the risk transfers to the buyer as soon as the goods are handed over to the carrier, destination contracts place that risk firmly on the seller until delivery is complete. Therefore, the seller is held accountable for any damage that occurs during shipping under these circumstances.

In a destination contract, the seller retains the responsibility for the goods until they reach the buyer's specified destination. This principle affects liability for loss or damage during transit. If the goods are damaged while in transit, it is the seller who is responsible because they are expected to handle the shipping and ensure that the goods arrive in the agreed-upon condition. The seller’s obligations include taking care of the logistics to deliver the products safely to the buyer's designated location. This provision provides the buyer with increased security and mitigates risk, as the buyer will not bear the loss if something happens to the goods before they arrive. In contrast to a shipment contract, where the risk transfers to the buyer as soon as the goods are handed over to the carrier, destination contracts place that risk firmly on the seller until delivery is complete. Therefore, the seller is held accountable for any damage that occurs during shipping under these circumstances.