12 May WHEN OR WHERE DID THE RISK OF LOSS PASS?
The defendant agreed to sell watches to the buyer in Mexico. A notation was printed at the bottom of the contract that, translated into English, read as follows: “please send the merchandise in cardboard boxes duly strapped with metal bands via air parcel post to Chetumal. Documents to Banco de Commercio De Quintana Roo S.A.” There were no provisions in the contract that specifically allocated the risk of loss on the goods sold while in the possession of the carrier. When the goods were lost in transit, the buyer sued for a refund of this purchase price. Judgment was entered for the defendant, and the buyer appealed. Judgment for whom, and why? Was this a shipment or destination contract? When or where did the risk of loss pass?
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