Question

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 ________.

Answer 1

Answer:

FOB Shipping point; FOB Destination.

Explanation:

FOB shipping point: FOB stand for free on board and FOB shipping point is a shipping term used as an agreement between buyer and seller of goods, which says that seller can record sales once it leave the warehouse or shipping dock of seller and buyer receive the title of the product. In this case buyer will bear the delivery cost of goods and can not claim for any damage or loss of goods during transit from seller, however, buyer have complete control over the goods delivery.

FOB Destination: It is also a shipping term used as an agreement between buyer and seller that seller can only record the sale of goods, once it is delivered to the buyer´s shipping dock or any specific location as asked. Seller hold the title of the product during the goods in transit and have to bear all the cost and charges of transportation of goods as seller is responsible for the delivery of goods.