The apples were shipped to Franco from Oregon but, through no fault of Franco, were totally destroyed before reaching New York. Does any liability rest on Franco? Explain.
Franco, a New York dealer, purchased twenty-five barrels of specially graded and packed apples from a producer at Hood River, Oregon, under a contract that specified an agreed price on delivery at Franco’s place of business in New York. The apples were shipped to Franco from Oregon but, through no fault of Franco, were totally destroyed before reaching New York. Does any liability rest on Franco? Explain.
A destination or target agreement is the one wherein the customer and retailer contract to assign the likelihood of loss between them, when the goods may be lost or damaged before the customer obtains them from the retailer; and both of the involved parties may not be criticized for the loss.
Section 2-509 (1) (b) may provide that the risk of loss is not going to pass on to the buyer until the goods are properly tendered to the buyer at the target place, which, in this case, is Country NY. So, Person F is not accountable for loss of the goods.
Here, Person F may not be liable for any loss under the destination agreement, which states that the contract between Person F and the retailer required the retailer to deliver the goods at a specific target place and both parties may not be liable for the loss.