[nib]

hello friends ,

please help me with the following question .

question:The earliest time a purchaser of existing goods will acquire an insurable interest in those goods is when: ?

Wrong answer:“title passes to the purchaser.”

Correct answer : “the goods are identified to the contract.”

Explanation=Title passes from the seller to the buyer only if the goods are identified in the sales contract. A buyer has an insurable interest from the time the goods are identified in the contract.

My question is,

1) What is remarkable difference between title and insurable interest and ownership .

2) If I purchase goods with “ FOB destination “. In that case , title will transfer to purchaser when goods delivered to destination .At that moment , insurable interest will also transfer to buyer. After that buyer can insure goods received .

During shipment any loss incurred will be paid by seller . So in that case seller will insure goods in transit

3) so what is the exact meaning of “A buyer has an insurable interest from the time the goods are identified in the contract.”

[denivathar]

Remember: risk of loss does not equal insurable interest or title

The explanation is a little vague but generally the title either passes when it is determined to pass, per the contract, or when the good are delivered to the buyer (either when the buyer physically has them if the seller is a merchant or when a nonmerchant seller agrees that the buyer can obtain them)

1) Title means that you actually own and can claim right to the goods. Insurable interest occurs when you derive some sort of benefit from an object (for example, I am relying on a shipment of materials in order to be able to manufacture the product I sell and if something happens to the materials I ordered, I will have some sort of damages) that has been identified in a contract you made with the seller.

2) FOB _____ only refers to who bears risk of loss, generally. It will transfer title if the contract is silent as to when the title will transfer.

3) See #1 for explanation of insurable interest

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[Author]

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