International Trade : An Essential Cog At Modern Day Business

In the classic FOB framework, it is still the importer who nominates the shipping vessel, but then it is the exporter who remains a party to the contract of carriage until up until the moment s/he take out the bill of lading in the name of the importer. The additional services FOB framework, in essence is the reverse of the strict FOB framework. The exporter assumes responsibility for the nomination of vessel and contract of carriage and may take out the bill of lading in his/her name. The variations of FOB make it a more flexible option that some exporters may be inclined to choose. However there is more that needs to be discussed before one can come to conclusion. II Passing of Ownership and Risk for CIF and FOB Contracts Lord Wright stated that a CIF contract is “a type of contract which is more widely and more frequently in use than any other contract used for the purposes of sea-borne commerce." The exporter is obliged to obtain a bill of lading and insurance policy and send it to the importer along with an invoice for payment, where the buyer will pay upon receiving the documentation. In the case of Diamond Alkali v Bourgeois, McCardie affirmed that the only form of a correct transaction was if there was an on board bill of lading. His opinion stems from the Lickbarrow v Mason case where the on board bill of lading was aligned with the trade custom and so considered the bill of lading as a document of title at common law. However, if proved via