Which of the following is a false statement? Pursuant to a destination contract,

Question

Which of the following is a false statement?

Pursuant to a destination contract, the risk of loss typically passes to the buyer when the goods are duly delivered to the carrier.

Pursuant to a shipment contract, the risk of loss typically passes to the buyer when the seller places conforming goods in the possession of the carrier.

An agency relationship is a fiduciary one pursuant to U.S. law.

An officer of a corporation typically possesses the power to bind the corporation contractually even though the officer is not a director.

Pursuant to a destination contract, the risk of loss typically passes to the buyer when the goods are duly delivered to the carrier.

Pursuant to a shipment contract, the risk of loss typically passes to the buyer when the seller places conforming goods in the possession of the carrier.

An agency relationship is a fiduciary one pursuant to U.S. law.

An officer of a corporation typically possesses the power to bind the corporation contractually even though the officer is not a director.

Explanation / Answer

If the officer do not hold the position or authority to enter into contract on behalf of the organization, the organization will not be liable for his contract. The authority should be expressed in written form by the organization. Therefore an officer who has no authority or is not a director do not possesses the power to bind the corporation contractually. So the correct option which is False is D.

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