Title Passing

The passing of the title to exported goods is determined in large measure by the selling terms. For example, if an exporter sells goods c.i.f. he may be presumed to pass ownership and tender of documents. However, he may ship on a bill of lading drawn to his own order, to prevent the buyer from gaining possession of the goods until the draft is paid or accepted. In this case he retains a security title to the goods, that is, a title for securing purposes only, until the financial arrangement is carried out. Caution depending on the laws of the buyer’s country one may not be able for force passage of title without payment having been received or the buyer having accepted delivery of the goods or a clear understanding by the buyer being understood and accepted.

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