If A sells to B,and B obtains title while goods are in transit,the goods were shipped.If C sells to D,and C maintains title until the goods arrive at D's door then the goods were shipped.

Question

Quizplus · Accepted Answer

FOB shipping point means that title and risk of loss transfer to the buyer as soon as the goods are loaded on the carrier's vehicle, while FOB destination means that title and risk of loss transfer to the buyer when the goods arrive at the destination specified in the sales contract. Therefore, in option A, since A sells to B and B obtains title while the goods are in transit, it is FOB shipping point. And in the case of C selling to D, where C maintains title until the goods arrive at D's door, it is FOB destination.

If a Sells to B,and B Obtains Title While Goods