F.O.B Mind Map

Only available on StudyMode
  • Topic: Board game, Contract law, Boarding
  • Pages : 2 (311 words )
  • Download(s) : 36
  • Published : May 29, 2013
Open Document
Text Preview
ESSENCE OF F.O.B
* SELLER BEAR COST AT 1ST (CAN CLAIM LATER AFTER BOARDING THE GOODS FINISH) & RESPONSIBILITY OF PUTTING GOODS ON BOARD SHIP

* BUYER IS THE SHIPPER (WHEN DELIVERY IS COMPLETE, BUYERS BEARS RISK OF LOSS UNTIL THE SHIP ARRIVES A THE DESTINATION)

NATURE OF F.O.B TRANSACTION
BUYER AND SELLER ENTER INTO THE CONTRACT OF SALE THEN THEY AGREED : 1.BUYER NOMINATES THE SHIP(SET DATE,TIME,WHERE TO BOARD THE GOODS) 2.SELLER DELIVERED GOODS ON BOARDS (BASED ON THE DESCRIPTION IN THE CONTRACT HOW IT SUPPOSED TO BE BOARD IN THE SHIP)

DUTIES OF BUYER
1. ARRANGE THE CARRIAGE OF THE GOODS (prepare the ship)
2. GIVE SUFFICIENT NOTICE TO THE SELLER (time, date, location of ship) 3. BEAR ANY COSTS (failure to prepare the ship as in contract) 4. BEAR THE RISK OF LOSS/ DAMAGE TO GOODS (once the ship start sailing) 5. OBTAIN APPROPRIATE LICENSES

6.PAY ANY COSTS INCIDENTAL TO THE IMPORTATION OF GOODS.
7.PAY FOR THE GOODS

DUTIES OF SELLER
1. SUPPLY CONFIRMING GOODS (that have been ordered state in the contract) 2. DELIVER THE GOODS
3. PLACE GOODS (into the ship as been descript in the contract) 4. PAY ANY COSTS (if the is incidental while boarding the goods) ) 5. OBTAIN EXPORT LICENSE / OTHER DOCUMENT
6. PROVIDE PROOF OF DELIVERY IN THE MANNER AGREED
F.O.B (FREE ON BOARD)
* International contract whereby the seller promises to deliver goods on board ship and notify the buyer of the delivery. * Cases: Cowasjee v Thompson and Wimble Sons & Co. v Rosenberg

1ST NOMINATION
* BUYER HAVE FULL AUTHORITY AS THEY HAVE RIGHT TO SET TIME , DATE ,LOCATION OF BOARD THE GOODS.

2ND NOMINATION
* OCCUR WHEN FAILED TO NOMINATE AN EFFECTIVE VESSEL

* IT MAY HAVE CHANCE TO CONTINUE THE CONTRACT PROVIDED THAT THERE IS TIME FOR SELLER TO LOAD & PERFORM OTHER DUTIES.
tracking img