Under the Free On Board (FOB) destination terms, who holds the title of the goods?

Under FOB destination terms, the seller retains title to the goods until they are delivered to the buyer's specified destination. This means that the seller is responsible for any risks and costs associated with transporting the goods until they reach the buyer. This arrangement emphasizes that the seller is accountable for the delivery and ownership of the goods until they are fully received by the buyer at the designated location.

The other options suggest scenarios where the title would transfer under different conditions. For instance, stating that the title transfers once the goods leave the seller's facility does not apply under FOB destination, as the seller's responsibility continues until delivery. Similarly, claiming that the title transfers after inspection implies a requirement for inspection before ownership, which is not the case in this shipping arrangement. Lastly, the idea that the seller retains title until payment is received confuses the concepts of ownership transfer and payment processes, which are distinct under FOB destination terms. Thus, the correct understanding of these shipping terms clarifies why the seller maintains title until the goods reach the destination.