Please describe the difference between a shipping contract and a destination contract. Additionally, the following scenario applies to the following sub-questions: There is a contract for the delivery of goods between a seller located in California and a buyer in New York. Leslie drops the goods off with the carrier in California, and somewhere along the way, the goods are damaged before reaching New York.

1) If the contract terms call for FOB (free on board) California, who bears risk of loss? Why?

2) If the contract terms call for FOB New York, who bears risk of loss? Why?