Passing of risk to the buyer
This query is : Resolved
13 July 2010
In CIF terms & FoB terms, when the risk will pass on to the buyer? Please expain.
14 July 2010
Depends on the agreement between the parties.
CIF would mean that the carriage, insurance and freigt would be borne by the consignor.
FOB would mean that the articles would be loaded on the vessel at the cost of the consignor. The cost till that stage will be borne by the consignor. The marine insurance and the freight will be borne by consignee.
Risk depends on a seperate understanding between the parties. The risk transfer can be decided ex-factory also.
CIF would mean that the carriage, insurance and freigt would be borne by the consignor.
FOB would mean that the articles would be loaded on the vessel at the cost of the consignor. The cost till that stage will be borne by the consignor. The marine insurance and the freight will be borne by consignee.
Risk depends on a seperate understanding between the parties. The risk transfer can be decided ex-factory also.
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