In a Shipment Contract, What Is F

question 37

Multiple Choice

In a shipment contract, what is F.A.S. (free alongside ship) ?

• A) The contract price, which includes, in a lump sum the cost of the goods and the insurance and freight to the named destination.
• B) The seller's obligation is to, at his expense and risk, deliver the goods adjacent to the vessel in the manner usual in that port and to provide the buyer with pickup instructions.
• C) The seller's obligation is to, at his own expense and risk, transport the goods to that place and there tender delivery of them with appropriate pickup instructions to the buyer.
• D) The seller must properly ship conforming goods and if they arrive by any means he must tender them on arrival but he assumes no obligation that the goods will arrive unless he has caused the non-arrival.
• E) The seller's obligation is to put the goods into the possession of a carrier and make a reasonable contract for their transportation, to deliver any necessary documents so the buyer can take possession, and promptly notify the buyer of the shipment.

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Definitions:

Bill Of Exchange

An instrument in writing, signed by the drawer and addressed to the drawee, ordering the drawee to pay a sum certain in money to the payee named therein (or bearer) at some fixed or determinable future time, or on demand.

Drawer

In the context of banking and finance, the individual or entity that writes and signs a check, thereby instructing the bank to pay the stated amount to another party.

Acceptor

In the context of banking and finance, an entity that accepts a bill of exchange or draft, agreeing to pay the amount to the holder at a specified date.

Endorser

An individual or entity that signs and backs a document, often a negotiable instrument, indicating their support and assurance.