Under FOB origin, when does the title transfer?

Under FOB origin, when does the title transfer?

• A. At shipment
• B. At delivery
• C. On payment
• D. On inspection

Answer: (A)

FOB origin means ownership and risk pass to the buyer as soon as the seller hands the goods to the carrier at the origin, i.e., when the goods are shipped from the seller’s location. That moment of shipment is when title transfers. It isn’t at delivery (that would be FOB destination), nor is it tied to payment or inspection.

FOB origin means ownership and risk pass to the buyer as soon as the seller hands the goods to the carrier at the origin, i.e., when the goods are shipped from the seller’s location. That moment of shipment is when title transfers. It isn’t at delivery (that would be FOB destination), nor is it tied to payment or inspection.