chapter  11
Fob Contracts
Pages 32

The central feature of an fob (free on board) contract is that the seller fulfils his obligations when he delivers goods conforming to the contract over the ship’s rails. He must bear all the costs up to that point. Although he is not under a duty to insure the goods once he has delivered them, the seller is under a statutory duty to give notice to the buyer so that the buyer has an opportunity to insure. Examiners often set questions dealing with this duty under s 32(3) of the Sale of Goods Act 1979.