What is the full form of F.O.R.?

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    • It is one of the methods of delivering goods from source to party that defines the liability of transportation payment. If a particular item is delivered under the FOR terms, then the goods are delivered without any transportation charges. It is applicable for goods delivered by road. A similar term is FOB (Free on Board), which is applicable for transportation via sea medium. FOB (Free On Board) means that the seller fulfills his obligation to deliver when the goods have passed over the ship’s rail at the named port of shipment. “This means that the buyer has to bear all costs and risks of loss or damage to the goods from that point”. FOR helps in minimizing the risk to a seller but at the same he might not be able to save costs especially when supplying bulk materials.

6 Responses to What is the full form of F.O.R.?

what are the merits and demerits of F.O.R?

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FOR is a mode of agreement entered between seller and buyer on how the goods will be transported. The advantage for seller is that he doesn’t have to bother regarding making arrangements of transportation. He just has to produce the goods and load it onto the trailer/ vehicle nominated by the seller.

The advantage for seller is that, based on large volumes of his other consignment he might enter into long term agreements with a transporter. This may result into savings in transportation cost.
The other method is CFR basis, in which the responsibility of identifying the transporter lies with the seller.

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It is one of the methods of delivering goods from source to party that defines the liability of transportation payment. If a particular item is delivered under the FOR terms, then the goods are delivered without any transportation charges. It is applicable for goods delivered by road. A similar term is FOB (Free on Board), which is applicable for transportation via sea medium. FOB (Free On Board) means that the seller fulfills his obligation to deliver when the goods have passed over the ship’s rail at the named port of shipment. “This means that the buyer has to bear all costs and risks of loss or damage to the goods from that point”. FOR helps in minimizing the risk to a seller but at the same he might not be able to save costs especially when supplying bulk materials.

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