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Infographic PDF
Infographic PDF
Title Note
Title means ownership Incoterms do not indicate the exact point (location) of
transfer of title. They only determine at which point there
Title passes from exporters to buyers, is a transfer of risk from the seller to the buyer.
and the transfer of title takes place at
any point during the transaction, from Title to goods cannot pass under a contract for sale prior
the signature of the contract to the to their identification to the contract (Section 2-501), and
final payment. unless otherwise explicitly agreed the buyer acquires by
their identification a special property as limited by this Act.’
‘Title to the goods passes with risks.’ (UCC, Section 2-401).
Risk Insurance
2 main risk involved in the sale of goods: Policy of insurance: a legal contract between the insurer and the
The risk of the goods injuring a person(s), business, or entity being insured (the insured).
third party Certificate of insurance: a document issued by an insurance
The risk of loss or damage company or broker which verifies the existence of an insurance
policy and summarizes the key aspects and conditions of the policy.
These risks are transferred at the point of delivery
Letter of insurance: a letter from the exporter to the buyer
under the standard of Incoterms
stating that the goods are insured.