ABSTRACT

The central feature of a free on board (fob) contract is that the seller fulfils buyer obligations when seller delivers goods conforming to the contract on board the ship. The seller is under a statutory duty to give notice to the buyer so that the buyer has an opportunity to insure. The primary duty of the fob buyer is to nominate an effective ship to carry the goods. This chapter involves the buyer's inability to nominate an effective ship and the related problem of where there is a delay in the arrival of a ship which the buyer has nominated to carry the goods. The buyer in transactions has two distinct rights of rejection: first, the right to reject documents arises when the documents are tendered; and, second, the right to reject the goods arises when they are landed and when, after examination, they are not found to be in conformity with the contract.,.