When does title to supplies pass to the Government?

The correct choice indicates that title to supplies passes to the Government upon formal acceptance. This is a key concept in contract law, particularly in government contracting and procurement.

Formal acceptance signifies that the Government has reviewed and approved the supplies according to the terms outlined in the contract. Once this acceptance occurs, the Government assumes ownership, meaning it has legal title to the supplies. This process ensures that the supplies meet the required specifications and standards before ownership transfers, protecting the Government's interests and minimizing the risk of taking possession of unsatisfactory goods.

In contrast, the point at which the Government pays for the supplies is not necessarily when title transfers, as payment can occur before or after acceptance based on the terms of the contract. Similarly, the passage of title after final inspection is also not accurate, as acceptance is what officially confers ownership. The shipping point may denote when risks and responsibilities begin to transfer, but it does not equate to the transfer of title, which only occurs once the Government formally accepts the supplies.