A New York seller contracts with a San Francisco buyer to ship goods to the buyer in San Francisco. There is no indication as to whether the shipment will be F.O.B. New York or F.O.B. San Francisco. When does risk of loss pass from the seller to the buyer?
2007-10-16 15:17:53 · 1 answers · asked by Miss McBride 1 in Business & Finance ➔ Other - Business & Finance
If it's not stated whether it's FOB Destination or Shipping Point, it's taken to mean the latter.
FOB is an International Term of Sale that means the seller fulfills his or her obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks to loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.
2007-10-16 18:35:42 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋