The details or conditions of a transaction including details of the payment method, timing, legal obligations, freight terms, required documentation, insurance, responsibilities of the buyer and the seller, and when the buyer assumes risk for the shipment.
Arrangements between buyer and seller which specifies the conditions required in payment for goods or services.
An agreement between a buyer and a seller about payment for merchandise (typically this would be recorded on a purchase invoice).
period of time during which the conditions of a contract will be carried out. May refer to the time in which loan payments must be made or invoices should be paid. A deadline as for making payment.
The invoice is the sales contract between buyer and seller and indicates the Terms of Sale.
Terms referring to the specifics indicated in a written sales contract between buyer and seller. Specifics usually include terms and method of payment, time and place of delivery, and insurance requirements.
The following are brief descriptions of the more common Terms of Sale (fully defined in the Guide to Incoterms), setting forth the obligations of the seller and buyer. FREE ON BOARD (FOB) - The seller assumes charges and risk for the goods until they are loaded on board a named carrier at a named point, which may be an inland point or a port. The buyer is responsible for any loss or damages after loading on board the carrier. The buyer should specify FOB to control insurance without relying on the seller. FREE ALONGSIDE (FAS) - The seller assumes charges and risk until the goods are delivered alongside the vessel. Loss or damage from alongside the vessel is the responsibility of the buyer. COST AND FREIGHT (C & F) - The seller assumes responsibility for the charges and for loss or damage until the goods enter the carrier's custody or are loaded on board the vessel. The buyer is responsible for loss or damage at this point. COST INSURANCE AND FREIGHT (CIF) - The seller's price includes cost of the goods, marine insurance and all transportation charges to the named destination point.
The point at which sellers have fulfilled their obligations so the goods in a legal sense could be said to have been delivered to the buyer. Thirteen shorthand expressions that set out the rights and obligations of each party when it comes to transporting the goods.