Question

If a contract for the sale of goods includes a C&F shipping term and the seller has fulfilled all of its obligations, the

A. Buyer retains the right to inspect the goods prior to making payment.
B. Title to the goods will pass to the buyer when the goods are received by the buyer at the place of destination.
C. Risk of loss will pass to the buyer upon delivery of the goods to the carrier.
D. Seller must obtain an insurance policy at its own expense for the buyer's benefit.

Answer 1

In a C&F shipping term, the risk of loss passes to the buyer and the title to the goods passes when received by the buyer at the destination.

Step-by-step explanation:

In a contract for the sale of goods that includes a C&F (Cost and Freight) shipping term, the seller has fulfilled their obligation once they have delivered the goods to the carrier and made arrangements for the shipment. After this point, the risk of loss passes to the buyer.

This means that if anything happens to the goods during the transportation, it is the buyer's responsibility. The title to the goods will pass to the buyer when the goods are received by the buyer at the place of destination.