The essence of f o b

The whole charge, therefore, for loading from alongside is paid by the ship and covered by the freight. They do not include an extensive or detailed examination of a variety of marginal responsibilities of which many have been the subject of dispute and even litigation between parties to f. FOB stands for Free on Board. The seller should obtain insurance cover for buyer in case of strikes, wars and civil commotions, if required by buyer, at expenses of buyer. Seller is accountable for transportation and handling costs until the goods cross the ships rail. In this situation, it becomes hard to apply the rules which govern stipulations as to the time of delivery in contracts for the sale of goods generally. The extension of sellers duties may include an obligation to procure insurance. If a period of shipment is specified, the option for the actual time of shipment within the period lies with the buyer.

Bringing the goods on to the port is merely subsidiary to the export, which is the gist of the license. However, sometimes risks and rewards are not transferred even though the title may have been.

The last type may be described as the f. He must give the documents to the buyer. The buyer has to make a payment at the time of acceptance if the contract. In cases when the seller uses the FOB shipping point terms, however, the seller still bears the risks and rewards until the product reaches the customer: the shipping terms are, in essence, FOB destination, and the seller should not recognize a sale until the product gets to the customer.

The goods were held to have been the property of the seller at the time they were damaged. The seller obtained insurance for whole consignment oftons of rye but the 10 Sec.

cif and fob contracts pdf

He must notify the seller of the ships readiness to load within a reasonable time before the date for shipment so as to give the seller sufficient time to complete the loading process. In case, parties have decided to correspond by electronic means, then above documents can be substituted by the electronic equivalent data message i.

Subject to the exception in s.

free on board contract

The whole charge, therefore, for loading from alongside is paid by the ship and covered by the freight. But under the CIF the seller is required to deliver the goods at a port which was earlier decided.

If there is contract between the parties to communicate electronically then above documents are swap by electronic data interchange EDI.

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(DOC) Seller duties [A] Under Common Law FOB Classic