Ch 18

COD (Cash on Delivery) Shipment

-The seller may keep the right to possession by making the shipment COD, or by any other specifications to not surrender goods until they are paid for. -Does not effect when the title or risk of loss passes.

CISG (Convention on Contracts for the International Sale of Goods)

-Thirteen International Commercial Terms called Incoterms -could apply to parties whose countries have ratified it.

Shipment contact

-seller is liable until goods are delivered to a carrier for shipment to the buyer. -the risk of loss transfers from seller to buyer when the goods are delivered to a carrier.

Destination contract

-seller is required to deliver goods to a particular destination, and the sellers performance is not complete until the until to goods are delivered. -Title and risk pass to the buyer when delivery is made.

When documents that can transfer title, or ownership, represent existing, identified goods, the buyer has property interest, but not title, and an insurable interest in such goods at the time and place of contacting for their sale.

The buyer does not acquire the title of become subject to the risk if loss until delivery of the document is made. The seller has a insurable interest and title up until that time.

Damage to identified goods after risk of loss passes

buyers loss.

Sale on return

completed sale with rights to return the goods

warehouse receipt

document of title issues by storage company for goods stored

Fungible goods

goods of a homogeneous nature sold by weight or measure Examples: wheat, oil, coal the UCC provides that title to an undivided share or quantity of an identified mass of fungible goods may pass to the buyer at the time of transaction.

Damage to identified goods before risk of loss passes

if at no fault of either party, the contacted is avoided-or annulled- if the loss is total. partial loss gives the buyer the option avoid the contract completely or to accept the goods remaining with a reduction to the contract price.

CFR (Cost of Freight)

means the seller pays the cost for freight to the delivery port, but the title and the risk of loss transfer to the buyer once the goods are on board of a ship at the port of shipment.

If existing goods require transporting, title to the goods passes to the buyer when the seller has completed delivery.

merchant- The risk of loss passes to the buyer when the goods are received. nonmerchant- risk passes when goods are made available to the buyer

Bailment

personal property temporarily in the custody of another person

Commercial unit

quantity regarded as separate unit.

Sale on approval

sale that is not completed until buyer approves goods

Damage to UNidentified goods

sellers loss

Incoterms

supply international rules to interpret sales terms widely used in international trade. International Commercial Terms

Free on Board (FOB)

the seller bears risk until the goods are delivered to a designated point.