F.O.B. (Free on Board) Contract

 F.O.B. (Free on Board) is a common maritime trade contract where the seller’s responsibility is to deliver the goods across the ship's rail at a specified port of shipment.

Key Features:

  • Cost & Risk: The seller bears all expenses and risks until the goods are loaded on the vessel. Once "on board," the risk of loss or damage passes immediately to the buyer.

  • Delivery: Delivery is deemed complete the moment the goods are placed on the ship.

  • Buyer’s Duty: The buyer must nominate the ship, arrange the contract of carriage (freight), and pay the price.

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