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Ex Ship: A Comprehensive Guide to Its Legal Meaning and Use
Definition & Meaning
The term "ex ship" refers to a shipping arrangement in which the seller is responsible for all costs associated with transporting goods to a specified port of destination. Under this arrangement, the seller bears all charges until the goods are unloaded from the ship. After the goods leave the ship, the buyer assumes responsibility for any additional costs, including unloading fees and customs duties. The risk of loss also transfers to the buyer once the goods are off the ship.
Table of content
Legal Use & context
The term "ex ship" is commonly used in contracts for the sale of goods, particularly in international trade. It is relevant in civil law contexts, especially in commercial transactions. Understanding this term is important for buyers and sellers to clarify their responsibilities regarding shipping costs and risk of loss. Users can manage related legal documents using templates available from US Legal Forms, which are drafted by experienced attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A company in New York sells machinery to a buyer in Florida under an "ex ship" agreement. The seller pays for shipping the machinery to the port in Florida. Once the machinery is unloaded, the buyer is responsible for any further costs, such as customs duties and unloading fees.
Example 2: A retailer imports clothing from overseas with an "ex ship" term. The seller covers all shipping costs to the U.S. port. After the clothing is unloaded, the retailer must pay for any taxes or additional fees incurred.
Relevant laws & statutes
In Florida, the law governing "ex ship" delivery is outlined in Fla. Stat. § 672.322. This statute specifies that unless otherwise agreed, delivery under an "ex ship" term requires the seller to discharge all liens and ensures that the risk of loss does not pass to the buyer until the goods are properly unloaded.
State-by-state differences
State
Key Differences
Florida
Follows Fla. Stat. § 672.322 regarding delivery and risk transfer.
California
Similar provisions, but may have additional local regulations regarding shipping.
New York
Generally aligns with the Uniform Commercial Code, with specifics on risk transfer.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
FOB (Free on Board)
The seller pays for transportation to a specified location, and risk transfers at that point.
Risk transfers at the shipping point, unlike "ex ship," where it transfers after unloading.
CIF (Cost, Insurance, and Freight)
The seller covers costs, insurance, and freight to the destination port.
The seller's responsibility extends to insurance, unlike "ex ship," which does not include insurance.
Common misunderstandings
What to do if this term applies to you
If you are entering into a contract involving "ex ship" terms, ensure you understand your responsibilities regarding costs and risk of loss. It's advisable to review the contract carefully and consider consulting a legal professional for guidance. You can also explore US Legal Forms for templates that can help you draft or review agreements related to shipping and delivery.
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