1 / 15

CHAPTER 13 Ownership and Risk of Loss in Sales

CHAPTER 13 Ownership and Risk of Loss in Sales. 13-1 Transfer of Ownership 13-2 Risk of Loss and Insurable Interest in Sales. 13-1 Transfer of Ownership. GOALS Discuss who may transfer ownership of goods Explain what is required for transfer of ownership of goods and when it occurs.

annrodriguez
Download Presentation

CHAPTER 13 Ownership and Risk of Loss in Sales

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CHAPTER 13Ownership and Risk of Loss in Sales 13-1 Transfer of Ownership 13-2 Risk of Loss and Insurable Interest in Sales

  2. 13-1 Transfer of Ownership GOALS • Discuss who may transfer ownership of goods • Explain what is required for transfer of ownership of goods and when it occurs Chapter 13

  3. WHO MAY TRANSFER OWNERSHIP? • Authorized persons • Buyers in a sale induced by fraud • Holders of negotiable documents of title • Merchants with possession of sold goods Chapter 13

  4. FOCUS • Who has the authority to transfer ownership of goods? Chapter 13

  5. Besides the owner, who may transfer ownership of goods? Chapter 13

  6. REQUIREMENTS FOR OWNERSHIP TRANSFER • When does ownership transfer? • Common situations • Seller delivers goods to their destination • Seller ships, but does not deliver, goods to their destination • Seller delivers document of title • Buyer takes possession at place of sale Chapter 13

  7. What two characteristics must goods have in order to have ownership of them transferred? Chapter 13

  8. 13-2 Risk of Loss and Insurable Interest in Sales GOALS • Explain the general rules for identifying when risk of loss transfers • Identify the point at which insurable interest of goods transfers • Identify when risk of loss and insurable interest transfer in specific situations Chapter 13

  9. FOCUS • Identifying the transfer of risk of loss • Seller ships goods by carrier • Goods held by bailee • Either party breaches after goods identified • Goods neither shipped by carrier nor held by bailee Chapter 13

  10. WHEN DOES RISK OF LOSS TRANSFER? • If seller ships goods by carrier • If the goods are held by a bailee • If either party breaches after the goods are identified • In other cases Chapter 13

  11. Explain when the risk of loss transfers from seller to buyer when the seller ships the goods by carrier. Chapter 13

  12. WHEN DOES INSURABLE INTEREST TRANSFER? Buyer has right to: • Insurable interest • Inspect goods at reasonable hour • Compel delivery if seller wrongfully withholds delivery • Collect damages form third persons who take or injure the goods Chapter 13

  13. When does a buyer obtain an insurable interest in the goods? Chapter 13

  14. TRANSFER OF RIGHTS AND RISKS IN SPECIFIC SALES • Cash-and-carry sales • Sales on credit • COD sales • Sale or return • Sale on approval • Sale of an undivided interest • Auction • Bulk transfer Chapter 13

  15. What is the most common type of transaction for low-priced items such as groceries, and when does risk of loss pass from a merchant to a buyer for these sales? Chapter 13

More Related