Also known as: places of arrival
Written by attorneys · grounded in primary & secondary sources — see below
The destination point specified for receipt of goods in a sales contract. It fixes the market price for damages when the buyer rejects nonconforming goods after they reach that point or revokes acceptance there.
Prime Logistics contracted to sell Pierce Patterson 200 radios for delivery to his central warehouse. The radios arrived and were distributed to field offices. After repeated failures Pierce revoked acceptance. At that time the market price at the warehouse location exceeded the contract price by $150 per unit. Damages are measured using the warehouse market because rejection followed arrival.
Paragon Construction agreed to buy steel beams for direct delivery to its downtown site. The seller instead shipped nonconforming beams to a rented staging yard outside the city. Paragon's manager inspected the beams at the yard, rejected them in writing the same day, and learned of the breach there. Market price for damages is fixed at the staging yard market on the rejection date.
Select any source to read its text and confirm it supports the definition.
The place of arrival controls when the buyer rightfully rejects goods after they reach the destination or revokes acceptance after arrival. In those situations the market at the arrival point measures damages because that is where the buyer experiences the loss and must cover.
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No. An FOB term fixes the point where risk of loss passes and determines the place for tender in a non-delivery case. Once goods arrive at the buyer's destination and are rejected there the arrival market governs damages regardless of the earlier FOB designation.
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Market price is taken at the place of arrival on the date the buyer learns of the breach. That date usually coincides with inspection and rejection or revocation at the arrival point.
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No. The statutory exception for rejection after arrival overrides the contractual tender location once the goods reach a different point and the buyer rejects them there. The arrival market then supplies the damages measure.
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