TITLE TO GOODS AND RISK OF LOSS.ppt

19 - * ? 2010 Pearson Education, Inc., publishing as Prentice-Hall * TITLE TO GOODS AND RISK OF LOSS ? 2010 Pearson Education, Inc., publishing as Prentice-Hall CHAPTER 19 Identification of Goods Goods named in contract distinguished from seller/lessor’s other goods E.g., carton marked with buyer’s name. Risk of loss cannot pass until goods identified. Title cannot pass until goods identified. Identification of Goods (continued) Parties can agree to time and manner of identification. Existing goods identified when specific goods named. Future goods identified when born, planted, shipped, marked, or designated. Passage of Title Title cannot pass until goods exist and have been identified. Title passes upon terms agreed to in contract. If no terms are stated, title passes when delivery is completed. Shipment and Destination Contracts Shipment Contract Seller should make proper shipping arrangements. Deliver the goods into the carrier’s hands. Destination Contract Seller delivers goods either to buyer’s place of business or another destination specified in sales contract. Delivery of Goods Without Moving Them Buyer is required to pick up goods from seller If document of title or bill of lading is required, title passes when seller delivers the document. If no document of title and goods are identified, title passes at time of contracting. Shipping Terms Shipment Contracts F.O.B. point of shipment. F.A.S. C.I.F. or C.F. Destination Contracts F.O.B. place of destination. Ex-ship. No-arrival, no-sale. Risk of Loss: No Breach of Sales Contract Carrier Cases: Movement of Goods Shipment Contracts - Risk of loss passes to buyer when seller delivers the conforming goods to the carrier. Destination Contracts - Risk of loss passes to buyer when seller delivers the conforming goods to the specified destination. Risk of Loss: No Breach Noncarrier Cases: No Movement of Goods Merchant Seller - Risk of loss passes to buyer when buyer receives the goods. Nonmerch