In August 2006, International Commodities Export Corporation (ICEC) entered into an agreement for the sale of 230 tons of Chinese white beans to North Pacific Lumber company (NPL). According to the agreement, the beans were to conform to sample pc-16 and the shipment was to be made on the basis of C&F. Thirteen separate containers of beans were loaded on board two vessels at the port of Hong Kong to Portland, Oregon. An independent surveyor of quality found the bean quality to be in conformity with the description of the goods in the shipper’s invoice. The U.S. Food and Drug Administration (FDA) detained the shipment on arrival in Portland, Oregon, on the grounds that the goods contained filth and were unfit for human consumption. The beans were stored in a warehouse under federal government detention. After efforts to obtain release of the cargo, the buyer rejected the shipments for failure to conform to the contract (sample pc-16).
Questions
Did the title pass from seller to buyer? If so, when?
Is the seller responsible for the goods under C&F when the goods are on board the vessel? How about after delivery to buyer?
