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Home Q & A Board Humanities Legal Studies
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ferg ferg
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6 years ago
Bob Corporation entered into a contract to sell parts to Zeck. The contract provided that the goods would be shipped FOB Bob's warehouse. Bob shipped parts to Zeck that were stolen from the carrier. When Zeck checked the invoice, Zeck discovered that Bob had sent Model 20B instead of Model 20A, which the contract required. Whose loss? Why?
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#1
6 years ago
When the seller breaches the contract by sending the incorrect goods or goods that do not conform to the contract, the risk of loss is on the seller notwithstanding the fact that the goods were sent to the buyer under a shipment contract. The essence of this is that the seller does not pass the risk to the buyer until the seller properly performs.
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