Title is important for three reasons: it determines whether a sale has taken place, it determines the rights of creditors, and it influences who has an insurable interest. The parties may expressly agree in the event of postponement of ownership, or they may agree indirectly by agreeing on the terms of delivery (delivery controlling the passage of ownership without explicit agreement). Among the delivery conditions to choose are shipping contracts, destination contracts and delivery without transport of the goods (with or without ownership documents). If nothing is said about when the property moves and the parties have not agreed indirectly by choosing a delivery time, the property moves when the delivery obligations of the contract are complete and, if there are no delivery conditions, delivery is made when the seller makes the goods available in the seller`s place of business (or when the seller has no place commercial, Goods are supplied to the seller`s residence) – then the property moves. Since the standard position of the UCC (explained below in this chapter) is that the title is shifted when the seller has fulfilled the delivery obligations and the parties can agree on delivery terms, they can also effectively accept, by choosing these conditions, if the title is shifted (again, they can agree on any other language desired). It is therefore appropriate to examine certain delivery conditions at this stage. There are three possibilities: transit contracts, destination contracts and contracts for which the goods do not have to be moved. Suppose the contract provides that Delta Sponge Makers “ships the entire quantity of Sponge No. 2 in industrial quality by truck or train,” and that`s all the shipping contract says.
This is a “shipping contract” and UCC, Section 2-401(2)(a), states that title is transferred to Very Fast Foods at the “time and place of shipment.” By the time Delta hands over the 144 cartons of 1,000 sponges each to a truck driver – Easy Rider Trucking may pick them up at Delta`s own factory – the title has passed to Very Fast Foods. A sample ownership transfer agreement documents all relevant information related to the sale. The sales contract serves as proof of purchase and documentation 2011/2014. It is also considered as proof of the condition of the product at the time of sale in case of subsequent dispute. The document normally contains the following: if a service provider has not executed a document of service, he has not committed any theft. .