The term "F.O.B. Destination" stands for "free on board at destination." It indicates that the seller or consignor is responsible for delivering goods to a specified location. This means that the seller covers the shipping costs and assumes the risk of loss or damage until the goods reach the destination. Unless otherwise stated in the contract, the seller is liable for any issues that occur during transit.
F.O.B. Destination is commonly used in contracts related to the sale of goods, particularly in the fields of commercial law and procurement. This term helps clarify the responsibilities of parties involved in a transaction, particularly regarding shipping and liability. Users can manage these agreements themselves with the right legal templates, such as those provided by US Legal Forms.
Here are a couple of examples of abatement:
Example 1: A furniture store sells a sofa to a customer and agrees to ship it to their home. Under F.O.B. Destination terms, the store pays for shipping and is responsible for any damage that occurs during delivery.
Example 2: A manufacturer ships machinery to a buyer. The seller must ensure the machinery arrives safely at the buyer's facility, covering all shipping costs and risks until delivery. (hypothetical example)
Examples of state differences (not exhaustive):
| State | F.O.B. Destination Variations |
|---|---|
| California | Generally follows standard F.O.B. terms without significant variations. |
| Texas | Specific shipping clauses may be enforced, depending on local business practices. |
| New York | Commonly uses F.O.B. terms in commercial transactions, with few variations. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| F.O.B. Origin | Goods are considered sold when they leave the seller's location. | The buyer assumes risk and shipping costs once the goods are shipped. |
| Ex Works (EXW) | The seller makes the goods available at their premises. | The buyer is responsible for all costs and risks from the seller's location. |
If you are entering into a contract involving F.O.B. Destination terms, ensure that all shipping responsibilities and risks are clearly defined in the agreement. Consider using US Legal Forms' templates to create or review your contract. If you encounter complex issues, it may be wise to consult a legal professional for tailored advice.
Browse our library of 85,000+ state-specific legal templates.
It means the seller is responsible for shipping and risk until the goods reach the destination.