Archive for the ‘Trade Terms’ Category
Saturday, August 4th, 2007
The term "Open Account" refers to a credit arrangement between the buyer and seller of goods or services in which the goods are shipped (or services rendered) prior to payment. The buyer of the goods is granted a period of time after shipment (or service rendered) in which to pay the ...
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Wednesday, August 1st, 2007
The term "Letter of Credit" (sometimes referred to as "Documentary Credit") refers to an undertaking made by a bank to pay a beneficiary (usually the seller of goods) the sums owed by an account holder (usually the buyer of such goods), provided a pre-determined set of conditions are met. It ...
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Wednesday, August 1st, 2007
The term "Escrow" refers to monies deposited by a buyer to a trusted third party (the "escrow agent") that will be disbursed to the seller once the obligations of the seller have been met. The Escrow mechanism is used to allay fears that buyers and sellers might have regarding payment ...
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Sunday, July 29th, 2007
The trade term FAS, or "Free Alongside Ship" means that the seller delivers (i.e. title is transferred to the buyer) when the goods are place alongside the ship at the named port of origination. At that point the buyer bears the responsibility for loss or damage of the goods. The ...
Posted in Incoterms, Trade Terms | No Comments »
Sunday, July 29th, 2007
In the case of CFR, or Cost and Freight, the seller relinquishes title to the buyer as soon as the goods are loaded onto the ship in the port of origination. The seller pays the costs of transporting the goods to the named port of destination, but the risk of ...
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