§ 41-02-36 — (2-319) F.O.B and F.A.S terms

North Dakota § 41-02-36

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-02: Sales

Text

1. Unless otherwise agreed, the term F.O.B. (which means "free on board") at a named
place, even though used only in connection with the stated price, is a delivery term
under which:
a. When the term is F.O.B. the place of shipment, the seller must at that place ship
the goods in the manner provided in this chapter (section 41-02-52) and bear the
expense and risk of putting them into the possession of the carrier.
b. When the term is F.O.B. the place of destination, the seller must at the seller's
own expense and risk transport the goods to that place and there tender delivery
of them in the manner provided in this chapter (section 41-02-51).
c. When under either subdivision a or b the term is also F.O.B. vessel, car, or other
vehicle, the seller must in addition at the seller's own expense and risk load the
goods on board. If the term is F.O.B. vessel, the buyer must name the vessel and
in an appropriate case the seller must comply with the provisions of this chapter
on the form of bill of lading (section 41-02-40).
2. Unless otherwise agreed, the term F.A.S. vessel (which means "free alongside") at a
named port, even though used only in connection with the stated price, is a delivery
term under which the seller must:
a. At the seller's own expense and risk deliver the goods alongside the vessel in the
manner usual in that port or on a dock designated and provided by the buyer; and
b. Obtain and tender a receipt for the goods in exchange for which the carrier is
under a duty to issue a bill of lading.

3. Unless otherwise agreed in any case falling within subdivision a or c of subsection 1 or
subsection 2, the buyer must seasonably give any needed instructions for making
delivery, including when the term is F.A.S. or F.O.B. the loading berth of the vessel and
in an appropriate case its name and sailing date. The seller may treat the failure of
needed instructions as a failure of cooperation under this chapter (section 41-02-28).
The seller may also at the seller's option move the goods in any reasonable manner
preparatory to delivery or shipment.
4. Under the term F.O.B. vessel or F.A.S. unless otherwise agreed, the buyer must make
payment against tender of the required documents and the seller may not tender nor
the buyer demand delivery of the goods in substitution for the documents.