Destination Contract: Responsibilities and Obligations
What are the primary duties of Pine Mills Inc. in the destination contract with Quality Lumber Company?
a. Make sure the quality of the plywood meets the specifications.
b. Pay Quality Lumber Company in advance.
c. Deliver the plywood to a particular destination.
d. Provide a discount to Quality Lumber Company.
Answer:
In a destination contract like the one between Pine Mills Inc. and Quality Lumber Company, the seller's primary duty is to deliver the goods (plywood, in this case) to an agreed-upon location.
Explanation:
Under a destination contract between Pine Mills Inc. and Quality Lumber Company, the main responsibility of the selling party (Pine Mills Inc.) is to deliver the plywood to a stipulated destination. The options B and D about paying in advance and providing discounts aren't inherent parts of a destination contract. However, ensuring the quality of the plywood (option A) is significant since Quality Lumber Company would expect to receive plywood that meets the agreed specifications. Thus, apart from the main responsibility of delivery to a certain location, maintaining the agreed quality is a critical aspect to meet in a destination contract.