Free On Board - FOB

Free On Board - FOB
A trade term requiring the seller to deliver goods on board a vessel designated by the buyer. The seller fulfills its obligations to deliver when the goods have passed over the ship's rail.

When used in trade terms, the word "free" means the seller has an obligation to deliver goods to a named place for transfer to a carrier.

Contracts involving international transportation often contain abbreviated trade terms that describe matters such as the time and place of delivery and payment, when the risk of loss shifts from the seller to the buyer, as well as who pays the costs of freight and insurance.

The most commonly known trade terms are Incoterms, which are published by the International Chamber of Commerce. These are often identical in form to domestic terms, such as the American Uniform Commercial Code, but have different meanings. As a result, parties to a contract must expressly indicate the governing law of their terms.

It's important to realize that because this is a legal term, its exact definition is much more complicated and differs by country. It is suggested that you contact an international trade lawyer before using any trade term.

Investment dictionary. . 2012.

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Look at other dictionaries:

  • free on board — adv or adj: without charge for delivery to and placing on board a carrier at a specified point Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. free on board …   Law dictionary

  • Free On Board — Saltar a navegación, búsqueda Las siglas FOB (acrónimo del término en inglés Free On Board, «franco a bordo, puerto de carga convenido») se refieren a un incoterm, o claúsula de comercio internacional, que se utiliza para operaciones de… …   Wikipedia Español

  • Free On Board — FOB est un Incoterm qui signifie Free On Board, soit en français Sans frais à bord. On dit qu une marchandise est achetée ou vendue FOB quand celle ci est achetée sans les frais de transport et autres frais et taxes y afférant et sans les… …   Wikipédia en Français

  • free on board — 〈[ fri: ɔn bɔ:rd] Abk.: fob〉 Handelsklausel, nach der der Verkäufer Kosten u. Risiko des Transportes der Ware bis aufs Schiff übernimmt [engl., „frei an Bord (des Schiffes)“] * * * free on board   [ friː ɔn bɔːd, englisch], Abkürzung FOB, eine… …   Universal-Lexikon

  • Free on Board — ( FOB) Implies that distribution services like transport and handling performed on goods up to the customs frontier (of the economy from which the goods are classed as merchandise.) are included in the price. Bloomberg Financial Dictionary * * *… …   Financial and business terms

  • free on board — (FOB)    A description of purchased goods that are shipped without transportation charge to a specific place. Free on board at the place of manufacture shows there is a charge for delivery to other destinations. For example, if books are… …   Business law dictionary

  • free on board — 〈 [fri: ɔ̣n bɔ:d] Abk.: fob, f. o. b.〉 Handelsklausel, nach der der Verkäufer Kosten u. Risiko des Transports der Ware bis aufs Schiff übernimmt [Etym.: engl., »frei an Bord«] …   Lexikalische Deutsches Wörterbuch

  • free on board — [ bɔ:d] <engl. > frei an Bord (Klausel, die besagt, dass der Verkäufer die Ware auf dem Schiff zu übergeben u. bis dahin alle Kosten u. Risiken zu tragen hat); Abk.: fob, f. o. b …   Das große Fremdwörterbuch

  • free on board — free′ on board′ adv. bus See fob • Etymology: 1920–25 …   From formal English to slang

  • free on board — (FOB) The term F.O.B. is an abbreviation for free on board and means that seller will deliver subject matter contracted for, on certain conveyance, without expense to buyer. Tyson v. Seaport Grain, Inc., Tex.Civ.App., 388 S.W.2d 731, 735. In… …   Black's law dictionary

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