Terms of Trade

 Terms of Trade

The following are the main terms used in the trade

1. Cash on delivery (COD):- It refers to a type of transaction in which payment

for goods or services is made at the time of delivery. If the buyer is unable

to make payment when the goods or services are delivered then it will be

returned to the seller.

2. Free on Board or Free on Rail (FoB or FOR):- It rerers to a contract between

the seller and the buyer in which all the expenses up to the point of delivery

to a carrier (it may be a ship, rail, lorry, etc.) are to be borne by seller.

3. Cost, Insurance and Freight (CFF):- It is the price of goods which includes

not only the cost of goods but also the insurance and frieght charges payable

on goods upto destination port.

4. Errors and Omissions Excepted(E&OE):- It refers to that term which is used

in trade documents to say that mistakes and things that have been forgotten

should be taken into account.

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