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Evaluating Risk

1. Read the following scenario and answer the question in 5-10 sentences.

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You are the buyer of a large quantity of ball bearings. You sign a contract drafted by the seller which states you will “pay $500,000 for shipment for agreed goods arriving to New York next year on ship MV Liberty.” Afterward you realize that “Liberty” is a common name in shipping and are concerned that a risk exists that you will be forced to pay for different goods that arrive on a ship with a similar name. Evaluate this risk and articulate ways that the contract could have been drafted to prevent a problem.

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