On 1 October Cosmos Engineering Ltd sent a letter to Tropical Repairers Pty Ltd, offering

to sell specified machine parts for $50,000 to be delivered on 1 November on "our normal

terms and conditions", a copy of which is attached". According to the terms and conditions,

Tropical Repairers was to bear the risk of damage during shipment.

On 3 October Tropical Repairers replied, "Your offer accepted on the terms listed on our

attached Order Form". The terms in the Order Form stated that insurance to cover

possible damage during delivery was the responsibility of the shipper (ie, Cosmos

Engineering). Cosmos Engineering did not read these terms.

On 6 October Cosmos Engineering sent a letter back to Tropical Repairers, stating: "Your

order confirmed as per the details discussed, and will be dispatched in 7 days".

Tropical Repairers received the goods and kept them. Some of the goods were damaged

during shipment. Neither Cosmos Engineering nor Tropical Repairers insured the goods,

each believing that it was the other's responsibility.

Who has to bear the losses suffered during shipment? Explain your answer.