2: When the seller completes his performance relating to the delivery of goods, there are 3

situations which could happen:

- Situation 1: Payment hasn’t been made
When the buyer hasn’t paid to the seller, the contract is not completed. It means the
ownership of the goods still belongs to the seller. Therefore, in this situation, the title hasn’t
been passed to the buyer.
- Situation 2: Payment has been made
At the moment the buyer paid to the seller, the contract has been completed. Therefore, the
ownership of the goods immediately belongs to the buyer. In this situation, the title has been
passed to the buyer.
- Situation 3: Title is passed at the moment the goods pass the boat’s railing at their
port of destination.
In this way, sellers are responsible for everything involved with shipping. This means that
the seller is responsible for risk and insurance costs until the goods reach their point of
destination with the buyer. Ownership and liability transfer from the seller to the buyer the
moment the goods pass the boat’s railing at their port of destination.