Contracts and Sales Multistate Bar Practice Exam

What are a seller's responsibilities when the contract is a destination contract?

1. Deliver goods to the buyer's specified destination

2. Ship goods at their own expense

3. Only notify the buyer of shipment

4. Transfer goods to a carrier

The correct answer is: Deliver goods to the buyer's specified destination

A seller's responsibilities under a destination contract specifically require them to deliver the goods to a particular location that is specified by the buyer. In this type of contract, the seller retains ownership and risk of loss for the goods until they reach the designated destination. This obligation includes ensuring that the items arrive in good condition at the exact location agreed upon, which is aligned with the unique characteristic of destination contracts, emphasizing delivery rather than just shipment. In contrast, the other options highlight aspects that do not fully encompass the seller's obligations in a destination contract. While shipping goods at their own expense might generally be a consideration in such contracts, it does not capture the core responsibility of ensuring delivery to the specified destination. Notification of shipment and transferring goods to a carrier are actions relevant to this context but do not fulfill the essential requirement of delivering the goods to the buyer's location, which is what defines a destination contract.