The importance of the terms FOB and FAS in contracts for the sale of goods is that they obligate the buyer to pay immediately upon delivery of the goods.

Question

Quizplus · Accepted Answer

If the delivery term of the contract is FOB or FAS the place at which the goods originate,the seller is obligated to deliver to the carrier goods that conform to the contract and are properly prepared for shipment to the buyer,and the seller must make a reasonable contract for transportation of the goods on behalf of the buyer.

The Importance of the Terms FOB and FAS in Contracts