destination contract definition · LSData (2024)

FAQs

What is a destination contract? ›

Under a destination contract, the seller promises to deliver specified goods to the buyer's destination. The seller must confirm that the purchased goods get to the buyer's destination. The destination contract can be used for the transactions which are overseen by the Uniform Commercial Code.

a shipment contract requires the seller to ship the goods via carrier to a particular destination, where a destination contract requires the seller to ship goods via a particular carrier b.

location. If the location is the seller's location (i.e., the seller's city), the contract is a shipment contract. If the FOB location is the place to which the goods are being shipped (i.e., the buyer's city), the contract is a destination contract. In a shipment contract, the seller can ship goods by carrier.

In a destination contract, one of the duties of a seller is:  to deliver the goods to a carrier.  to get the goods to the destination at the buyer's disposal.  to deliver the goods with a reasonable contract for their transportation.

For example, if a company in New York purchases a shipment of goods from a supplier in California under a destination contract, the supplier is responsible for delivering the goods to the buyer's location in New York.

If it is a destination contract, the seller has two duties: to get the goods to the destination at the buyer's disposal and to provide appropriate documents of delivery.

Once on the ship, the buyer is responsible financially for transportation costs, customs clearance, fees, and taxes. Conversely, with FOB destination, the seller pays the shipment cost and fees until the items reach their destination, such as the buyer's location.

FOB (Freight on Board) Destination is a shipping term which means that the seller retains the legal title to the goods until they reach the location of the buyer. In this case, the seller pays for the transportation of the freight and takes care of additional freight charges until the goods reach the buyer.

Destination contracts are an example of noncarrier delivery. A buyer or lessee who rightfully covers may sue the seller or lessor for additional expenses paid. A party in a contract that uses its bargaining power unfairly can render the contract unconscionable.

A bill of lading is a document of title, a receipt for shipped goods, and a contract between a carrier and a shipper. This document must accompany the shipped goods and must be signed by an authorized representative from the carrier, shipper, and receiver.

What does shipment contract mean? ›

A shipment contract is a way for a buyer and seller to agree on who will be responsible if goods are lost or damaged before the buyer receives them. With a shipment contract, the buyer takes on the risk of loss for the goods once they are shipped by the seller.

A carrier agreement is a documented promise between a shipper and a carrier that the shipper will use the carrier's services in exchange for a discount on those services. A shipper of any size will typically have an agreement with at least one carrier to reduce their shipping costs.

Destination is a term that refers to the selection of an individual to receive an inheritance through a specific provision known as a destination clause. This provision plays a crucial role in determining the distribution of assets upon someone's demise.