The buyer must give the seller sufficient notice of the vessel name, Essay

The buyer must give the seller sufficient notice of the vessel name, loading point and, where necessary, the selected deliver - Essay Example Both parties privy to the contracts have their rights and responsibilities. The rights of one party are usually the responsibilities of the other, just like in many other contracts. In FOB contracts, the seller fulfills his obligations with regards to delivery once those goods pass the ship’s rails.3 The most common terms of FOB contracts are Incoterms that were generated and published by the International Chamber of Commerce. They are however subject to be affected by the local laws of the countries from where the buyers and seller are transacting from.4 Despite these most of the obligations of the buyers and sellers remain intact. This paper will explore the buyer’s obligations under an FOB contract to nominate the vessel. The Buyer’s Obligations under an FOB Contract Under the FOB contracts, the main obligation of the buyer is to provide the seller with sufficient notice of the vessel name, loading point, and where necessary, the selected delivery time within the agreed period.5 This obligation has of late been reviewed because of changing circumstances as shall be pointed out later in the paper. Apart from this obligation, the buyer has a series of other obligations that are similar to those in other buyer-seller contracts. First, the buyer has the obligation of paying the price for the goods as provided in the contract.6 This does not even have to be stipulated since it is presumed that both parties know their duties. The seller has the duty of providing the goods and receiving the payments while it is the buyer’s duty to receive the goods and make payments for the same. According to Incoterms, the buyer also is under an obligation, at his own risk and expense, to obtain any official authorization, including a license to import, and where necessary, the permission for the goods to transit through other countries.7 This is because it is the duty of the buyer to transport the goods having been loaded to the vessel that was specifi ed and at the specified loading point. The buyer is obligated to contract, at his own expense, for the freight services to be provided if he does not have his own. Just like in any other contract of sale, the buyer is under an obligation to take the delivery of goods usually at the named loading point and vessel at a specific date or period, where applicable. Since the seller’s obligations cease once the goods pass the ship’s rails on the loading point, the buyer is obligated to bear all the risks of loss or damage to the goods. The buyer should also accept and give proof of delivery of the goods as directed in the notice that he furnished the seller with.8 The other obligation is that of inspecting the goods as to whether they are in sellable condition. It is the buyer’s duty to pay for the cost of pre-shipment inspection expenses.9 The exceptions here are when it was otherwise agreed between the two parties or where the authorities of the country of export exp licitly direct the seller to incur the expenses for pre-shipment inspection. Lastly, the buyer is under an obligation to reimburse the seller all the expenses incurred in his bid to render his assistance to the buyer. This obligation is carried out more as an issue of