Your Department Secretary Has Called a Local Office Supply Company

Multiple Choice

Your department secretary has called a local office supply company and ordered 100 reams of copy paper. The agreement is that the paper will be delivered to the department office and a check for payment will be given on delivery. On the way to make the delivery the truck is in a crash, and the paper is destroyed in a fire resulting from the accident.

A) This is a shipment contract, and the office supply company bears risk of loss.
B) This is a shipment contract, and your school bears risk of loss because the paper had been set aside and tendered.
C) This is a destination contract, and because delivery had been initiated, the school bears the risk of loss.
D) This is a destination contract, and since the goods were never properly tendered, the office supply company bears the risk of loss.