Sight Draft

  

You run a pet store specializing in exotic pets. You're waiting on a shipment of koala bear cubs. The bill of exchange for the cubs is a sight draft.

That distinction means the exporter (meaning the Australian company shipping the koalas) keeps title until they arrive. In transit, they remain they Aussies' bears (and their responsibility...you know, in case they get eaten by the shipment of boa constrictors you also have coming in).

Once the koalas arrive, you wire payment and take over title. Once they arrive (once you have them in your sight), you take ownership.

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