Welcome To Contract Easily! ( Consult, Contract, Share,download Legal Matters Easily )
Contract Easily
- Phone : +919669664421 Available: 11:00 am - 6:00 pm (IST)
- Email : [email protected]
- Consult Now
Welcome To Contract Easily! ( Consult, Contract, Share,download Legal Matters Easily )
Contract Easily
Stamp paper is not included with this agreement and is for illustration purposes only. If e -stamp is applicable in your city you can order it during checkout.
Stamp paper is not included with this agreement and is for illustration purposes only. If e -stamp is applicable in your city you can order it during checkout.
Guidelines for Drafting an Agreement for Sale of Goods (F.O.B. Basis)
Usage:
An Agreement for Sale of Goods on a "F.O.B. (Free On Board) Basis" is commonly used in international trade. It specifies the responsibilities and obligations of the buyer and seller in terms of the delivery of goods. F.O.B. terms determine when and where the risk and title to the goods transfer from the seller to the buyer. This agreement is vital for businesses engaged in importing or exporting goods by sea, air, or land.
Common Mistakes to Avoid:
Unclear F.O.B. Point: Specify the exact location where risk transfers (e.g., F.O.B. Origin or F.O.B. Destination). Failing to do so can lead to disputes over liability during transit.
Incomplete Goods Description: Provide a detailed description of the goods, including quantity, quality, specifications, and packaging, to avoid misunderstandings about what is being sold.
Payment Terms: Clearly outline the price, currency, payment method, and any applicable Incoterms (International Commercial Terms) to prevent payment disputes.
Delivery Obligations: Define each party's responsibilities for transportation, insurance, and import/export compliance, as well as any necessary documentation like bills of lading or customs forms.
Force Majeure Clause: Include a provision for unforeseen events like natural disasters or political instability, specifying how delays or cancellations will be handled.
Dispute Resolution: Specify how disputes will be resolved, such as through arbitration or mediation, to avoid costly legal battles in different jurisdictions.
Applicable Law: Clarify the governing law and jurisdiction to determine which country's laws will apply in case of disputes.
Insurance: Determine which party is responsible for insuring the goods during transit, and specify the coverage amount and terms.
By adhering to these guidelines and avoiding common mistakes, you can draft a comprehensive Agreement for Sale of Goods (F.O.B. Basis) that ensures clarity and minimizes the risk of disputes in international trade transactions.