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Article 1523

1. Delivery of goods to a carrier generally constitutes delivery to the buyer, whether the carrier was named by the buyer or not. However, if the parties intended otherwise, delivery to the carrier does not transfer ownership. 2. If the seller fails to enter a reasonable contract with the carrier on behalf of the buyer, and the goods are lost or damaged, the buyer can decline to accept delivery or hold the seller responsible for damages. 3. Common trade terms like COD, FOB, CIF, FAS are defined, which specify responsibilities for costs, risks, and when ownership transfers between buyer and seller.

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1K views1 page

Article 1523

1. Delivery of goods to a carrier generally constitutes delivery to the buyer, whether the carrier was named by the buyer or not. However, if the parties intended otherwise, delivery to the carrier does not transfer ownership. 2. If the seller fails to enter a reasonable contract with the carrier on behalf of the buyer, and the goods are lost or damaged, the buyer can decline to accept delivery or hold the seller responsible for damages. 3. Common trade terms like COD, FOB, CIF, FAS are defined, which specify responsibilities for costs, risks, and when ownership transfers between buyer and seller.

Uploaded by

John Lexter Macalber
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Article 1523

Delivery of Carrier on behalf of buyer

1. General rule – delivery of such goods to the carrier constitutes delivery to the buyer, whether
the carrier is named by the buyer or not.
2. Exceptions – when a contrary intention appears, the parties did not intend the delivery of the
goods to the buyer through the carrier.

Seller’s duty after delivery to carrier

1. To enter on behalf of buyer into such contract reasonable under the circumstances – if the seller
omits to do so, the buyer may decline to treat the delivery to the carrier as a delivery to himself
if the goods are lost or damaged in course of transit. Or the buyer may hold the seller
responsible in damages. If the seller exercises the first right, transfer of ownership will be
deemed not to have taken place.
2. To give notice to buyer regarding necessity to insure goods –

Definition of trade terms

1. COD – collect on delivery. The carrier acts for the seller in collecting the purchase price. The
buyer must pay for the goods before he can obtain possession. Do not prevent title from passing
to the buyer on delivery to the carrier where they are solely intended as security for the
purchase price.
2. FOB – free on board.
3. CIF – cost insurance and freight.
4. FAS – free alongside vessel (port of shipment). Seller pays all charges and bear the risk until the
goods are placed alongside overseas vessel and within reach of its loading tackle.
5. Ex factory, Ex warehouse(named point of origin) – price quoted applies only at the point of
origin and the seller agrees to place the goods at the disposal of the buyer at the agreed place
on the date within the period fixed.
6. Ex dock (named port of importation) – seller quotes a price including the cost of the goods on
the dock at the named port of importation.

Article 1524

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