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Legal Terms - FOB contract (Free On Board contract)
it is a type of agreement for the international sale of goods wherein the seller's obligation is satisfied by loading the goods onto a vessel. Subsequently, all expenses and the risk of unintentional loss or damage transfer to the purchaser. The buyer is also responsible for insurance during maritime transportation. When commodities are transported by air or rail, the terms FOB Airport or Free on Rail (FOR) are occasionally employed. FOB is a specified Incoterm in Incoterms 2020.
it is a type of agreement for the international sale of goods wherein the seller's obligation is satisfied by loading the goods onto a vessel. Subsequently, all expenses and the risk of unintentional loss or damage transfer to the purchaser. The buyer is also responsible for insurance during maritime transportation. When commodities are transported by air or rail, the terms FOB Airport or Free on Rail (FOR) are occasionally employed. FOB is a specified Incoterm in Incoterms 2020.
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