How to Spot a Destination Contract Various contract terms help distinguish destination contracts. The following terms will typically point to a destination contract: 1) FOB (Free on Board) – when delivery term in the contract states "F.O.B San Francisco" and the buyer or its distribution or logistic channel is located in San Francisco, the FOB clause points to a destination contract. The seller may be obligated to: Transport goods to the buyer’s destination Transport at the seller’s own expense Tender the goods at the buyer’s destination Assume the risk of loss during transportation 2) Ex Ship – This means "from the carrying vessel." In other words, the seller may be obligated to: Pay freight bills Ensure the goods leave the ship at destination Ensure the goods get unloaded 3) No arrival, no sale – This is a clause that gives the seller a little bit more leeway. The seller doesn’t assume liability unless the goods are damages due to the seller’s own actions. - See more at:
http://www.legalmatch.com/law-librar....ycBZLpga.dpuf
SO, I still think the deal at issue, and the one in Eric's example, is just a shipment contract where risk of loss passed to the buyer.