18.1 1.1
Law for Business, 15e
by Ashcroft
Chapter 18:
Transfer of Title and
Risk in Sales Contracts
Law for Business, 15e, by Ashcroft, © 2005 West Legal Studies in Business, a Division of Thomson Learning
18.2
Chapter 18
Objectives
 Explain
the importance of
determining when title and risk of
loss pass.
 Distinguish
between a sale on
approval and a sale or return.
 Discuss
the rule regarding attempted
sales by people who do not have title
to the goods, and list exceptions to
the rule.
18.3
Potential Problems in
Transferring Title
Ownership
Insurable interest
Risk of loss
18.4
Activity
Transfer of Title
and Risk
When does title or risk pass for the
following:
 Goods identified at the time of
contracting and not being transported.
 Future goods that will be shipped.
 Unidentified goods that have been
destroyed.
18.5
Activity
Transfer of Title
and Risk (answers)
Goods identified at time of contracting
and not being transported.
Passes to buyer at time and place of
contracting.
Future goods that will be shipped.
Passes to buyer when goods are
delivered to carrier.
Unidentified goods that have been
destroyed.
Risk passes to seller.
18.6
Types of Sales
Auction sales
C.O.D. sales
F.O.B. sales
International Sales
Sales of fungible goods
18.7
Special Rules on
Transfer of Title

Sale by entrustee

Consignment sales

Estoppel

When documents of title transfer
ownership

When documents must be recorded or
filed

Voidable title
18.8 1.8
Do you have a good
understanding of
transfer of title?