Question

What does the Uniform Commercial Code advocate when the ownership of the goods is manifested by a document of title?

		Any possible loss falls on seller and remains there until seller cures the breach or until buyer accepts despite the breach.
		The buyer receives a negotiable document of title covering the goods.
		The title passes at the time when, and the place where the documents are delivered to the buyer.
		The title passes at the time and place of contracting.
		The title passes to the buyer at the time and place at which seller completes his performance with reference to the physical delivery of the goods sale.

Answer 1

Answer: The title passes at the time when, and the place where the documents are delivered to the buyer.

Explanation:

In UCC, when there is no movement of goods, the ownership of the goods can be manifested by a document of title. When the ownership of goods is manifested by a document of title like bill of lading, dock receipt etc, the title passes at the time when and the place where the documents are delivered to the buyer. Hence the correct option is the third option. If there is no physical transfer of goods and no documents to exchange, the title passes at the time and place of contracting. The title passes to the buyer at the time and place at which seller completes his performance with reference to the physical delivery of the goods sale when there is physical movement of goods. The buyer receives a negotiable document of title covering the goods when the goods are in the possession of the bailee and are to be delivered without moving. Any possible loss falls on seller and remains there until seller cures the breach or until buyer accepts despite the breach when the seller breaches the contract. Hence these options are not correct.