FOB Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of FOB, written in plain English, along with examples of how it is used.
What is FOB?
(adj) FOB is the short form of ‘free on board’ is used to represent the pricing, cost structure, transfer of property right of a goods or merchandise sold, representing that sellers responsibility for incidental cost and risk ends when the goods are shipped on board of the transport vehicle. In FOB cases, insurance and all incidental cost there after need to be born by the buyer