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 upon 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