Text 2 Must Delivery and Payment Be Made Simultaneously?

In the basic sales transaction, payment, delivery (transfer of possession), and transfer of title take place simultaneously at the seller’s place of business. Even if payment and delivery, or both, take place later, title still passes when the buyer selects and agrees to buy the goods in the seller’s store. Thus, unless it is otherwise agreed or is the custom of the trade, the seller may retain the goods until the buyer makes payment in full. Similarly, the buyer may refuse to pay the price until the seller delivers all the goods. The buyer is entitled to a receipt when payment is made.

A bill of sale is a receipt that serves as written evidence of the transfer of ownership of (title to) goods. Neither a bill of sale nor a sales contract need identify the parties or explain the terms of the transaction. If a bill of sale is signed by the seller, buyer, or both, it can satisfy the requirements of the Statute of Frauds for a signed writing.

When goods are lost, stolen, or destroyed, as in fire, the document can be used to help prove value for insurance purposes. If the owner borrows money and uses the goods as security, the bill of sale ensures the creditor that the debtor owns the goods pledged.

Most sellers may extend credit to qualified buyers. Retailers may sell to customers who use credit cards or bank accounts, or who pay by installments.

Vocabulary

delivery передача владения

title правовой титул, право собственности; transfer of title передача права собственности

bill of sale купчая

security обеспечение; гарантия; залог

pay by installments выплачивать частями

goods pledged заложенные вещи

custom of trade торговый обычай

Text 3 Other Types of Sales Transactions

Cash-and Carry Sales

When the buyer in a sales contract is a consumer who pays cash and takes immediate delivery, title passes to the buyer at the time of the transaction. This is the most common type of transactions when the goods are groceries or footwear. Risk of loss passes upon the buyer’s receipt of the goods from a merchant.

The seller may insist on payment in legal tender. Checks are commonly used but are not legal tender. Acceptance of a check by the seller is not considered payment until the check is paid at the bank. But use of a check by a consumer does not affect the timing of the transfer of title or risk of loss.