Question 29

Title to supplies delivered under contract passes to the Government upon formal acceptance.

Title to the supplies delivered under the contract is transferred to the Government once the formal acceptance is completed. This signifies that the Government has acknowledged receipt and that the supplies meet the agreed-upon specifications.

A) Upon contract completion

This option is incorrect because the title transfer does not occur at the completion of the contract itself. Completion may involve finalizing all terms, but formal acceptance is the critical point for title transfer.

B) After final payment

This choice is also incorrect. While final payment may be a condition of the contract, it is not the determining factor for when title passes; rather, it is the formal acceptance that establishes this transfer.

C) Upon formal acceptance

This is the correct answer. The formal acceptance by the Government indicates that the supplies have been evaluated and deemed satisfactory, thereby transferring ownership of the supplies to the Government.

D) When the Government takes physical possession

This option is misleading. Physical possession does not automatically imply that the title has been transferred, as the formal acceptance process is the key to determining ownership.

Conclusion

The correct answer is C, as it accurately reflects the legal principle that title passes to the Government upon formal acceptance of the supplies. Other options fail to recognize the specific procedural requirement that formal acceptance entails, which is essential for the transfer of ownership. Thus, C is the only option that correctly aligns with contract law regarding title transfer.