Discuss the duties of an exporter under FOB and CIF contract. Describe the major legal implications of FOB contract

Discuss the duties of an exporter under FOB and CIF contract Under FOB (Free on Board) and CIF (Cost, Insurance, and Freight) contracts, the duties of an exporter can vary.

Under an FOB contract, the exporter's duties typically include:

Loading the goods onto the ship nominated by the buyer, at the named port of shipment.
Arranging for export customs clearance.
Paying the cost of loading the goods onto the ship.
Obtaining a clean bill of lading from the shipping company.

The legal implications of an FOB contract can be significant. The seller is responsible for the goods until they are loaded onto the ship, at which point the risk of loss or damage is transferred to the buyer. This means that if the goods are damaged or lost during loading, the seller is liable for any loss or damage. Additionally, the seller must ensure that the goods are loaded in a manner that complies with all relevant regulations and requirements.

Discuss the duties of an exporter under FOB and CIF contract If the seller fails to perform their duties under an FOB contract, the buyer may be entitled to terminate the contract and claim damages. It is therefore important for both parties to clearly understand their obligations and to ensure that they are properly fulfilled.

Under a CIF contract, the exporter's duties typically include:

Loading the goods onto the ship nominated by the buyer, at the named port of shipment.

Arranging for export customs clearance.
Paying the cost of loading the goods onto the ship.
Arranging for marine insurance for the goods during transit.
Obtaining a clean bill of lading from the shipping company.

Discuss the duties of an exporter under FOB and CIF contract The legal implications of a CIF contract can also be significant. The seller is responsible for the goods until they are delivered to the port of destination, at which point the risk of loss or damage is transferred to the buyer. The seller must also arrange for marine insurance, which provides coverage for loss or damage during transit.

If the seller fails to perform their duties under a CIF contract, the buyer may be entitled to terminate the contract and claim damages. It is therefore important for both parties to clearly understand their obligations and to ensure that they are properly fulfilled.

difference between cif and fob contract, difference between fob and cif in tabular form, cif and fob contracts pdf, cif contract pdf, rights and duties of parties under cif contract, advantages and disadvantages of fob and cif, documents required under cif contract, fob full form in export

What are the duties of an exporter under FOB

Under FOB (Free on Board) contracts, the exporter has the following duties:

Delivery of goods to the shipping port: The exporter must deliver the goods to the shipping port specified in the contract.

Loading of goods on the ship: The exporter must load the goods on the nominated vessel or ship at the named port of shipment.

Arranging for export customs clearance: The exporter must obtain all necessary export documentation and clear the goods through customs for export.

Payment of loading charges: The exporter is responsible for paying the cost of loading the goods onto the ship, including any charges for stevedoring or handling.

Obtaining a clean bill of lading: The exporter must obtain a clean bill of lading from the shipping company, which certifies that the goods have been loaded on the ship and are in good condition.

Transfer of risk: The exporter's responsibility for the goods ends when the goods are loaded onto the ship. From that point, the risk of loss or damage passes to the buyer.

It is important for the exporter to ensure that all of these duties are properly fulfilled, as failure to do so can result in delays, additional costs, or even legal disputes.

What are the major legal implications of FOB contract

FOB (Free on Board) contracts have several legal implications for both the exporter and the buyer. Some of the major legal implications of FOB contracts are:

Transfer of risk: Under an FOB contract, the risk of loss or damage to the goods passes from the exporter to the buyer at the point when the goods are loaded onto the ship. This means that if the goods are lost or damaged during transit, the buyer bears the risk and may be responsible for any associated costs.

Delivery and title: FOB contracts typically specify the point of delivery and transfer of title from the exporter to the buyer. This means that the exporter is responsible for delivering the goods to the named port of shipment and for obtaining a clean bill of lading, which transfers title to the buyer.

Cost allocation: FOB contracts specify which party is responsible for paying for different costs associated with the shipment, such as loading charges, freight charges, and customs clearance fees. It is important for both parties to understand these cost allocations and to ensure that they are properly documented.

Compliance with export regulations: FOB contracts require the exporter to comply with all applicable export regulations, such as obtaining necessary export licenses and completing export documentation. Failure to comply with these regulations can result in legal penalties or delays in the shipment.

Overall, FOB contracts have important legal implications for both the exporter and the buyer, and it is important for both parties to carefully review and understand the terms of the contract before agreeing to it.

What is the difference between FOB and CIF

FOB (Free on Board) and CIF (Cost, Insurance and Freight) are two common international trade terms that define the obligations and responsibilities of the buyer and the seller in an international sale transaction.

The main difference between FOB and CIF is the point at which the risk of loss or damage to the goods is transferred from the seller to the buyer. Under FOB, the risk of loss or damage to the goods passes from the seller to the buyer when the goods are loaded onto the shipping vessel at the port of shipment. Under CIF, the risk of loss or damage to the goods remains with the seller until the goods are delivered to the port of destination.

Another difference between FOB and CIF is that under CIF, the seller is responsible for arranging and paying for marine insurance coverage for the goods during transit. Under FOB, the buyer is responsible for arranging and paying for any insurance coverage they wish to have on the goods during transit.

Finally, under CIF, the seller is responsible for arranging and paying for the transportation of the goods from the port of shipment to the port of destination, as well as for all associated customs clearance and other fees. Under FOB, the buyer is responsible for arranging and paying for the transportation of the goods from the port of shipment to their final destination, as well as for all associated customs clearance and other fees.

In summary, FOB and CIF represent different levels of risk and responsibility for the seller and buyer in an international sale transaction. The choice of which term to use will depend on the specific needs and preferences of the parties involved.

ALSO READ:-

Solved Notes & Pdf

Whatsapp :- 8130208920