A shipment contract between two companies specifies "F. O. B. Oakland, California," and the goods are shipped from Los Angeles. The buyer bears the shipping expense and risk of loss while the goods are in transit to Oakland. This scenario is an example of which commonly used shipping term?

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Social Studies

19 September, 12:30

A shipment contract between two companies specifies "F. O. B. Oakland, California," and the goods are shipped from Los Angeles. The buyer bears the shipping expense and risk of loss while the goods are in transit to Oakland. This scenario is an example of which commonly used shipping term?

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Journey Hunt · Answer 1

Answer: No-arrival, no-sale contract

Explanation: No-arrival, no sale is the term that is usually used in contact of sales. It defines the situation that seller must send the product to the buyer on the described place in good condition and if any damage is caused to the product or late delivery, buyer has the right under the contract to neglect the delivered item or demand discount for the product.

In this situation, seller experiences the risk while the product is in transit as it might get damaged or lost. The situation mention in question about the contract of shipment between two companies describe the situation of no-arrival, no sale.

Buyer, in the mentioned case has to face the loss risk and its expenses while the product is transported to Oakland buyer from Los Angeles.