Question

When goods are sent f.o.b. shipment, the title and risk of loss:

a. pass to the carrier at the point of origin
b. pass to the buyer at the point of origin
c. pass to the buyer at the destination
d. pass to the buyer when he/she accepts the goods?

Answer 1

FOB shipping point means "Free on Board Shipping Point." The term means that the buyer takes delivery of goods being shipped to it by a supplier once the goods leave the supplier’s shipping dock. Meaning the buyer owns the goods in transit. Title passes to the buyer at the moment the goods are transferred to the carrier. Buyer files any damage claims. So the answer is pass to the buyer at the point of origin which is letter b.