Question

In: Accounting

Buyer and seller of goods enter into a shipment contract for delivery of the goods by carrier to the buyer.

Buyer and seller of goods enter into a shipment contract for delivery of the goods by carrier to the buyer. Title of these goods passes to the buyer when the (a) seller hands over the goods to the carrier (b) buyer takes the actual delivery of the goods (c) buyer receives a receipt for the goods (d) all of the above

Solutions

Expert Solution

Buyer and seller of goods enter into a shipment contract for delivery of the goods by carrier to the buyer. Title of these goods passes to the buyer when the (a) seller hands over the goods to the carrier.

Under shipment contract, when seller hands over the goods to the carriage, he is no longer the owner of goods. Once the goods gets transferred to the carriage his right and/or obligation ends. Hence we can say that as he is then not liable the title of these goods gets transferred to the buyer.


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