Legal Ownership
Supply agreements for electronic components and printed circuit boards define the precise point at which the legal ownership of the goods shifts from the seller to the buyer. This moment of title transfer determines which party bears the risk of loss or damage to the boards during transit and subsequent storage. The specific term is usually governed by international commercial codes, which establish whether the transition occurs when the goods leave the factory or upon delivery to the customer’s dock.
Clear documentation of this event is required to resolve disputes over damaged or delayed shipments.
Financial Liability
Risk of loss is linked directly to the transition of ownership, which affects how insurance claims are handled. If damage occurs before the title transfer takes place, the manufacturer is responsible for reproducing the circuit boards at their own expense. When the transition has already occurred, the buyer must file a claim with the carrier while remaining obligated to pay for the order.
Shipment Verification
Receipt inspection at the buyer’s warehouse is the standard process for confirming that the boards arrived without visible physical damage. This inspection must be completed within a defined period to ensure that any discrepancy is logged before the title transfer is legally finalized. Once finalized, the transaction is recorded on the balance sheet as completed.
