FOB contract

Quick Reference

A type of contract for the international sale of goods in which the seller's duty is fulfilled by placing the goods on board a ship. Thereafter all costs and the risk of accidental loss or damage passes to the buyer. Insurance during the sea transit is likewise the responsibility of the buyer. If the goods are to travel by air or rail the terms FOB Airport or Free on Rail ( FOR) are sometimes used. FOB is a defined Incoterm in Incoterms 2000.

Subjects: Law.

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