Maryland Notice by Buyer of Rejection of Goods for Breach by Seller of Shipment Duties

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Multi-State
Control #:
US-02880BG
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Word; 
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Description

Section 2-504 of the Uniform Commercial Code provides in part as follows:


Where the seller is required or authorized to send the goods to the buyer and the contract does not require him to deliver them at a particular destination, then unless otherwise agreed he must


" Put the goods in the possession of such a carrier and make such a contract for their transportation as may be reasonable having regard to the nature of the goods and other circumstances of the case; and

" Obtain and promptly deliver or tender in due form any document necessary to enable the buyer to obtain possession of the goods or otherwise required by the agreement or by usage of trade; and

" promptly notify the buyer of the shipment.

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FAQ

Under Article 2 of the Uniform Commercial Code, a shipment contract is one way in which buyer and seller could contract to allocate risk of loss between buyer and seller when goods or lost or damaged before the buyer obtains them from the seller and neither buyer nor seller is to blame for the loss.

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.

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.

If the contract does not require the seller to deliver the goods at a particular destination, a ?shipment? contract is presumed. On the other hand, a ?destination? contract is characterized by a seller's obligation to deliver at a particular destination.

[6] In a shipment contract the seller must merely provide conforming goods to the carrier, at which time the risk of loss passes to the buyer. In a destination contract, the seller retains responsibility for anything that goes wrong until the goods reach the purchaser.

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Maryland Notice by Buyer of Rejection of Goods for Breach by Seller of Shipment Duties