Transnational Commercial Law

Transnational Commercial Law

The acronym FOB refers to Freight on Board or Free on Board which is a term that is commonly used in the shipping industry and more so in international shipping . It specifies clearly which party to the shipping contract pays for the goods on board . This particular term whenever used in shipping documents means that the seller is required to bear the cost of transportation of goods to the port of destination . The Free on Board contract imposes various duties and obligations on both the buyer and the seller

. Prior to making any deliveries the seller must ensure that he verifies that the goods are in accordance with the from the buyer and that the goods are in their condition and status that was agreed between the parties . Another major issue that the Free on Board contract emphasizes is that the seller delivers the consignment at the time and place agreed by the two parties . According to this contract should the goods get damaged while on transit it is usually the responsibility of the seller to bear the cost of the damaged goods

Documentation is very essential in transnational commercial transactions just like in any other transaction . The seller therefore needs to have all the documents necessary to enable him deliver the goods and more importantly he must ensure that on delivery , the consignment is actually received by the buyer and not by any other person thus ensuring that the consignment does not get lost in...