Scenario 2 – Risk of Loss
Allan contracted to purchase a 60-inch smart television from Big Buy, an electronics retailer. Big Buy agreed to deliver the television to Allan’s home. The truck delivering the television was hit by another truck and all of the contents were destroyed.
In the above question the type of delivery term which best describes the delivery arrangement is CIP that is carriage insurance paid to . In this the sellers keeps the safety arrangement in his hand from packaging to delivering. In such type of accident the party which bears the loss is the company or you can the electronic retailer . Or if they have some kind of agreement or CIF type then the loss are divided also.
Allan could return the tv and ask for new tv . The contract obviously will go in low profile since everyone has to bear loss and even the market flow and the trade gets affected . So such thing are kept in conscious . Every company tries to package their good very properly so that the damaging in such cases may be the lowest .
Scenario 2 – Risk of Loss Allan contracted to purchase a 60-inch smart television from Big...