Which factor is considered after the general rule when determining risk of loss for goods delivered by common carrier?

Which factor is considered after the general rule when determining risk of loss for goods delivered by common carrier?

• A. The agreement between the parties
• B. Non-Merchant Seller until Buyer makes goods available
• C. Merchant Seller until Buyer takes physical custody
• D. Common Carrier delivery

Answer: (D)

The key idea is how risk of loss shifts when delivery is by common carrier. When the seller is required to ship goods via a carrier, risk of loss passes from seller to buyer at the moment the seller delivers the goods to the carrier. Once the goods are handed over to the carrier, the buyer bears the risk, even if the goods are still in transit or haven’t yet been physically received by the buyer. This reflects that the seller has fulfilled their delivery obligation by placing the goods with the carrier. Absent any agreement to the contrary, this rule applies to shipment contracts and governs who bears risk during transit.

The key idea is how risk of loss shifts when delivery is by common carrier. When the seller is required to ship goods via a carrier, risk of loss passes from seller to buyer at the moment the seller delivers the goods to the carrier. Once the goods are handed over to the carrier, the buyer bears the risk, even if the goods are still in transit or haven’t yet been physically received by the buyer. This reflects that the seller has fulfilled their delivery obligation by placing the goods with the carrier. Absent any agreement to the contrary, this rule applies to shipment contracts and governs who bears risk during transit.