2 when and where does title pass parties can

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2. When and where does title pass?    Parties can expressly agree to when and under what conditions title will pass.  If they do not, title passes when and where the seller delivers the goods, according to the con tractual delivery terms.  Under a shipment contract, a seller is to ship goods by carrier (a trucking company, a railroad), and title passes at the time and place of shipment.  Under a destination contract, a seller is to deliver goods to a specific destination (designated by the buyer), and title passes when goods are tendered at there.  When a buyer is to pick up goods, passage of title depends on whether the seller must deliver to the buyer a document of title (a bill of lading, a warehouse receipt).  When a document of title is required, title passes when and where the document is delivered.  The goods need not move.  When a document of title is not required, title passes at the time and place of contracting, if the goods have been identified; if the goods have not been identified, title passes when they are identified. 3. What title does a buyer acquire from a seller with voidable title?   A buyer of goods acquires the title that the seller had or had the power to transfer, and a buyer of a limited interest acquires rights only to the extent of the interest bought.  Nevertheless, a seller with voidable title can transfer good title to a good faith purchaser for value because an owner cannot recover goods from a good faith purchaser for value (for example, if a buyer pays for a watch with a bad check and then sells the watch to an unsuspecting third party, the owner—the original seller—cannot recover the watch from that third party). 4. When does risk of loss pass from seller to buyer?   Risk does not necessarily pass with title.  The parties can generally control when risk passes from seller to buyer by agreement (if goods exist and have been identified). Otherwise, risk generally passes when a seller delivers, or tenders delivery.  Under a shipment contract, risk passes when goods are delivered to a carrier.  (Generally, all contracts are assumed to be shipment contracts if nothing to the contrary is stated in the contract.)  Under a destination contract, risk passes when goods are tendered to a buyer at a specified destination.  When goods are to be picked up by a buyer, if the seller is a merchant, risk passes only on a buyer’s taking possession of the goods.  If the seller is a nonmerchant, risk passes on the seller’s tender of delivery.   (For example, if goods bought on Tuesday are to be picked up on Thursday but are destroyed on Wednesday, the seller suffers the loss if he or she is a merchant.  If the seller is
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