Continental Insurance Co. issued a policy to cover shipments by Oakley Fertilizer, Inc. Oakley agreed to ship

Question:

Continental Insurance Co. issued a policy to cover shipments by Oakley Fertilizer, Inc. Oakley agreed to ship three thousand tons of fertilizer by barge to Ameropa North America in Caruthersville, Missouri, from New Orleans, Louisiana. Oakley sent Ameropa a contract form that set out these terms and stated that title and risk would pass to the buyer after the seller was paid for the goods. Ameropa e-mailed a different form that set out the same essential terms but stated, “F.O.B. BARGE EX NEW ORLEANS.” The cargo was loaded onto barges but had not yet been delivered when it was damaged by Hurricane Katrina. Oakley filed a claim for the loss with Continental but was denied coverage. Oakley filed a suit in a Missouri state court against the insurer. Continental argued that title and risk passed to Ameropa before the damage as set out in the buyer’s form under Section 2–207(3) of the UCC because the parties did not have a valid contract under UCC 2–207(1). Apply UCC 2–207 to these facts. Is Continental correct? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Business Law Today The Essentials

ISBN: 978-0324786156

9th Edition

Authors: Roger LeRoy Miller, Gaylord A. Jentz

Question Posted: