“In an F.O.B. (‘free on board’) contract, the goods must be delivered on board by the seller, free of expense to the purchaser, and they are not at the latter’s risk until actually delivered on board, when the property in them passes to him. The seller must also give the buyer sufficient notice to enable him to insure against loss during the sea transit. The buyer, on the other hand, must name a ship or authorize the seller to select one. The seller cannot sue for the price until the goods are loaded, and if his inability to load was caused by the buyer’s failure to name an effective ship, his only remedy lies in damages. Similarly, F.O.R. means ‘free on rail.’ ” 2 E.W. Chance, Principles of Mercantile Law 86–87 (P.W. French ed., 10th ed. 1951).
FOB destination. A mercantile term denoting that the seller is required to pay the freight charges as far as the buyer’s named destination. [Cases: Sales 79. C.J.S. Sales § 168.]
FOB shipping. A mercantile term denoting that the seller is required to bear the risk of placing the goods on a carrier. [Cases: Sales 201(4). C.J.S. Sales §§ 224–227.]
