Brawn mails clothing to customers and requires them to pay the listed price for the goods, plus a delivery fee and an insurance fee to replace items lost or damaged in transit. Brawn then hands the clothing to a carrier for delivery to the customer. Buyers sued, arguing that the contracts were destination contracts because Brawn made sure the goods were to be delivered to the buyers and that, as destination contracts, Brawn as the seller already had responsibility to insure the goods until they reached the buyer. Brawn argued that the contracts were CIF contracts and that the added insurance fee was proper due to the status of the contracts as shipment contracts.

CASE QUESTIONS

1. Are these contracts shipment or destination contracts?

2. How would buyers ensure that Brawn was responsible for insuring the goods until delivery to the buyer?