Who should bear the cost of this loss

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Reference no: EM133411987

Question: A Canadian seller of auto parts near Toronto, Ontario, Canada reference "CPT Houston, Texas, USA Incoterms® 2020" in their contract with a buyer in Houston, Texas, USA. The Canadian seller hires a Canadian trucking company to take the goods to Detroit, Michigan, USA where the goods are to be delivered to a cross-docking facility (also arranged by the Canadian seller). At that point, a USA-based trucking company that was suggested by the buyer (also separately contracted by the seller) is scheduled to receive the goods and take them onward to Houston. However, the goods suffer water damage while inside the cross-docking facility in Detroit, are destroyed, and never loaded on the truck that was supposed to take them onward to Houston. The buyer was completely unaware of the involvement of the Canadian trucking company and the cross-docking arrangement and there was no mention of the transfer of the goods in Detroit in the sales contract. Who should bear the cost of this loss?

Reference no: EM133411987

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