Physical delivery of tangible goods and products generally occurs upon transfer of title. In the absence of formal title, this generally occurs upon transfer of the risks and rewards of ownership. Delivery terms often govern which party holds the risks and rewards of ownership. Free-on-board (FOB) shipping point means that title passes at the shipping point, while FOB destination means title passes at the final destination. Shipping terms are usually included in shipping documents, such as a bill of lading or manifest, but may also be specified in a signed agreement, purchase order, sales order or really any other document/communication.
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