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UCC Contracts QUESTION #5857
Question 1
A Seller sends a shipment of 'FOB Buyer’s Warehouse.' When does the risk of loss pass to the Buyer?
  • When the Seller delivers the goods to the carrier.
  • When the goods reach the Buyer’s warehouse and are tendered to the Buyer.✔️
  • When the Buyer pays for the goods.
  • When the goods are manufactured.
Correct Answer Explanation
A 'Destination Contract' (FOB Place of Destination) shifts the risk of loss to the buyer only when the goods are duly tendered at the specified destination.