Shipment contracts are created in two ways. the first method requires the use of the term shipment contract. the second requires the use of one of the following delivery terms: f. a.s., c. i.f., or c.& f. the buyer bears the risk of loss in a point of shipment contract .

1. F.O.B. point of shipment..

2. while the goods are in transit

Explanation:

1. F.O.B. point of shipment implies that the seller would arrange to ship the goods and put the goods in the carrier's possession. It requires the seller to arrange to ship the goods and put the goods in the shipping company's possession. The shipping costs is paid by the buyer.

2. In this delivery method the title to the good is transferred, meaning the ownership of goods is transferred at the time and place of shipment, so the buyer bears the risk of loss while the goods are in transit.