Unformatted text preview: contain concessionary terms such as: – Lenient return/payment policy – More accommodating credit policy – “Bill and hold” transactions – Inclusion of “extras” • Concessionary terms may create additional obligations, or may indicate that control has not passed to the buyer Legalities • Rights and obligations of sales transactions are described and governed by law • Contract law is most relevant as each sales transaction represents a contract with the customer • Contract creates enforceable obligations and establishes the terms of the deal • Sales contract generally determines the point when legal title and possession of goods sold pass on to the customer: – FOB shipping point – FOB destination • Implicit obligations not specifically outlined in the sales contract (i.e. constructive obligation) may also be enforced under common or other law...
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- Fall '12
- legal title, sales transactions, concessionary terms