What does "free on board" mean?

C

CAMSHOT

I am in a dispute over the specific meaning of this, or the abbreviation FOB.
If I were to deliver something to another province, country, etc. and said the
price was $500.00 FOB. Would that mean that I could not later add a shipping
charge?
 
C

catgal

The term "FOB" alone doesn't tell you much, so if this has already taken
place, you could probably make a case either way.

Usually the term is "FOB Origin" or "FOB Destination," but there are a lot
of other modifiers, as well (see below). Besides indicating who pays the
freight, these terms specify where in the shipping process the ownership is
transferred and who should file a claim for loss.

Hope you can find the one that's correct for your situation:

FOB Origin
Buyer -- Pays freight charges
Buyer -- Bears freight charges
Buyer -- Owns goods in transit
Buyer -- Files claims (if any)

FOB Origin, Freight Collect
Buyer -- Pays freight charges
Buyer -- Bears freight charges
Buyer -- Owns goods in transit
Buyer -- Files claims (if any)

FOB Origin, Freight Prepaid
Seller -- Pays freight charges
Seller -- Bears freight charges
Buyer -- Owns goods in transit
Buyer -- Files claims (if any)

FOB Origin, Freight Prepaid & Add
Seller -- Pays freight charges
Buyer -- Bears freight charges
Buyer -- Owns goods in transit
Buyer -- Files claims (if any)

FOB Destination
Seller -- Pays freight charges
Seller -- Bears freight charges
Seller -- Owns goods in transit
Seller -- Files claims (if any)

FOB Destination, Freight Collect
Buyer -- Pays freight charges
Buyer -- Bears freight charges
Seller -- Owns goods in transit
Seller -- Files claims (if any)

FOB Destination, Freight Collect & Allow
Buyer -- Pays freight charges
Seller -- Bears freight charges
Seller -- Owns goods in transit
Seller -- Files claims (if any)

FOB Destination, Freight Prepaid
Seller -- Pays freight charges
Seller -- Bears freight charges
Seller -- Owns goods in transit
Seller -- Files claims (if any)
 
O

Og

You have posted to an MS Office newsgroup, rather than a Free Legal advice
newsgroup.

Go to: www.google.com, type "FOB" and find multiple sources defining "FOB".
 

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