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Understanding Free Alongside Ship or FAS: Legal Insights and Responsibilities
Definition & Meaning
Free Alongside Ship (FAS) is an international shipping term used in sales contracts. Under this term, the seller is responsible for delivering goods alongside a vessel at a specified port for shipment. Once the goods are placed next to the ship, the seller's obligations are fulfilled. From that point, the buyer assumes all risks and costs, including loading the goods onto the ship and any subsequent charges.
Table of content
Legal Use & context
FAS is primarily used in international trade and maritime law. It defines the responsibilities of sellers and buyers in shipping transactions. This term is often included in sales contracts and may involve various legal forms and procedures that users can manage independently with tools like US Legal Forms. Understanding FAS is crucial for businesses engaged in exporting goods, as it clarifies liability and cost responsibilities.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A company in the United States sells machinery to a buyer in Europe. Under FAS terms, the seller delivers the machinery alongside a ship at the port of New York. Once delivered, the buyer is responsible for loading the machinery onto the ship and any associated costs.
Example 2: A hypothetical example could involve a seller in Brazil delivering agricultural products alongside a ship at the port of Santos. After the goods are placed alongside the vessel, the buyer takes on all risks and costs related to the shipment.
Comparison with related terms
Term
Definition
Free on Board (FOB)
The seller is responsible for delivering goods on board the ship, and the buyer assumes risk once the goods are on the vessel.
Cost, Insurance, and Freight (CIF)
The seller covers the costs of shipping and insurance until the goods reach the buyer's port.
Delivered Duty Paid (DDP)
The seller is responsible for all costs and risks until the goods are delivered to the buyer's location, including duties and taxes.
Common misunderstandings
What to do if this term applies to you
If you are involved in a transaction using FAS, ensure you understand your responsibilities as either the seller or the buyer. Review your sales contract carefully to confirm the terms of delivery and cost responsibilities. For assistance, you can explore US Legal Forms' templates for sales contracts and shipping agreements. If the situation is complex, consider seeking professional legal advice.
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