Free On Board (FOB) Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Free On Board (FOB), written in plain English, along with examples of how it is used.
What is Free On Board (FOB)?
(adj) Free On Board is the phrase 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. It is commonly termed as ‘FOB’ cost in which insurance and all incidental cost there after need to be born by the buyer