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JAMB Commerce 2005 Question 21

Question 21

Foreign Trade Documents

In CIF contracts, risk passes at the time of shipment but the property does not pass until

  1. A.there is physical transfer of goods
  2. B.the shipping manifests are signed
  3. C.the shipping documents are transferred
  4. D.the goods on board are delivered
Show the answer and explanation

Answer: C (the shipping documents are transferred)

Explanation

Under CIF the seller ships and insures the goods; the buyer becomes owner when he receives the shipping documents, especially the bill of lading.