Title And Risk Transfer

The transfer of title and risk can occur in various ways, each having different implications for the buyer:
*. **Free On Board (FOB):** Risk and title transfer once goods cross the ship's rail at the named port of shipment. This is most beneficial for the buyer as the seller bears all risk until goods are on board.
*. **Cost, Insurance, and Freight (CIF):** Seller covers costs, insurance, and freight to named port of destination, transferring risk once goods cross ship's rail at origin port. Title transfers upon payment.
*. **Delivered Duty Paid (DDP):** Seller bears all risks and costs, including duties, transporting goods to destination. Risk and title transfer upon delivery.
*. **Ex Works (EXW):** Buyer bears all costs and risks once goods are ready for collection at seller's premises. This is least beneficial for the buyer as the risk is transferred early.
Remember, the terms above are according to Incoterms rules which are standard in international trade.

I see, you're interested in the general transfer of title and risk. This usually follows a few stages:
*. **Contract formation:** The buyer and seller agree to terms.
*. **Delivery:** Seller delivers goods as per agreement.
*. **Acceptance:** Buyer accepts goods, transferring risk and title.
*. **Rejection:** If goods are faulty, buyer can reject them, shifting risk back to seller.
Please consult a local solicitor for more specifics.

In such scenarios, consider the following:
*. Understand your leverage: If you have other supplier options, you can push back on this negotiation.
*. Assess supplier trustworthiness: If they're reliable, accepting the terms might be less risky.
*. Evaluate your cash flow: Ensure it won't be impacted negatively.
*. Legal advice: Consult a solicitor for a tailored approach.
Remember, each situation is unique, so consider all factors.

The fallbacks to your position, ranked from most to least beneficial for a buyer could be:
*. **Payment after delivery:** This ensures the goods are as per expectation before payment, reducing risk.
*. **Payment on acceptance:** Similar benefits but acceptance is a clear, defined point.
*. **Partial payment before delivery:** Reduces risk but requires trust in the supplier.
*. **Full payment before delivery:** Most risky, as it relies entirely on supplier reliability.

Fallbacks from your position, ranked from most to least beneficial for the buyer, could be:
*. **Risk and title pass on acceptance:** Reduces buyer's risk as they can inspect the goods before accepting.
*. **Risk passes on delivery, title on payment:** Buyer assumes risk on delivery but retains leverage until payment.
*. **Title passes on delivery, risk on acceptance:** Buyer owns goods but risk is deferred.
*. **Risk and title pass on payment:** This is least beneficial as it requires upfront payment before assessing goods.

The fallbacks from your position, considering the payment terms are 60 days, could be:
*. **Risk and title pass on acceptance:** Allows for inspection before taking on risk and ownership.
*. **Title passes on delivery, risk on acceptance:** Buyer owns goods but risk is deferred till acceptance.
*. **Risk passes on delivery, title on payment:** Risk is assumed early but leverage is retained until payment.
*. **Risk and title pass on payment:** Least beneficial as it requires payment before assessing goods.

Fallbacks from your position, considering the payment terms are 60 days net, could be:
*. **Risk transfers on delivery, title on acceptance:** Allows for risk assumption early but title only after goods inspection.
*. **Risk and title transfer on delivery:** Immediate assumption of risk and ownership, but earlier than current system.
*. **Title transfers on delivery, risk on payment:** Early ownership but risk deferred until payment.
*. **Risk and title transfer on payment:** Least beneficial as risk and ownership only transfer post payment.