Why is it important to know the FOB point in an UCC contract?
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Similarly, what is FOB point of shipment?
January 24, 2019. The term FOB shipping point is a contraction of the term "Free on Board Shipping Point." The term means that the buyer takes delivery of goods being shipped to it by a supplier once the goods leave the supplier's shipping dock.
Subsequently, question is, what is FOB origin vs FOB destination? Origin” term of sale or an “F.O.B. Destination” term of sale is that the price of the goods sold in an “F.O.B. Destination” contract is a “delivered price” where the cost of transportation is “built in” to the price. Origin” contract does not include a charge for transporting the goods from the seller to the buyer.
People also ask, why is it important to determine when title passes?
A contact for sale with the right of return gives the buyer both title to the goods and the opportunity to return the goods to the seller at a later time. The buyer also bears any risk of loss holding the title.
Who pays freight cost when the terms are FOB destination?
The buyer pays the freight charges at time of receipt, though the supplier still owns the goods while they are in transit. FOB destination, freight collect and allowed. The buyer pays for the freight costs, but deducts the cost from the supplier's invoice. The seller still owns the goods while they are in transit.