Question

Give two circumstances under which one may use c.o.d as a term of payment?

Answer 1

heya...

Cash on delivery (COD) is a type of transaction in which the recipient makes payment for a good at the time of delivery. If the purchaser does not make payment upon delivery, the product is returned to the seller. The accepted forms of payment vary according to the terms of the purchase agreement.

Cash on delivery, also known as collect on delivery, allows a seller and buyer of a mail-order product to minimize the risk of fraud or default. COD allows the purchaser to pay at the time of delivery rather than in advance/at the time of purchase. If payment is not made at the time of delivery, the product is returned to the originating company with no further obligation from the buyer. 

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