TITLE 11 COMMERCIAL CODE

Section 2. Sales, 11-2-101 through 11-2-725.

ARTICLE 2 SALES

11-2-319. F.O.B. and F.A.S. terms.

Unless otherwise agreed the term F.O.B. (which means "free on board") at a named place, even though used only in connection with the stated price, is a delivery term under which:

When the term is F.O.B. the place of shipment, the seller must at that place ship the goods in the manner provided in this article (Code Section 11-2-504) and bear the expense and risk of putting them into the possession of the carrier; or
When the term is F.O.B. the place of destination, the seller must at his own expense and risk transport the goods to that place and there tender delivery of them in the manner provided in this article (Code Section 11-2-503);
When under either paragraph (a) or (b) of this subsection the term is also F.O.B. vessel, car, or other vehicle, the seller must in addition at his own expense and risk load the goods on board. If the term is F.O.B. vessel the buyer must name the vessel and in an appropriate case the seller must comply with the provisions of this article on the form of bill of lading (Code Section 11-2-323).

Unless otherwise agreed the term F.A.S. vessel (which means "free alongside") at a named port, even though used only in connection with the stated price, is a delivery term under which the seller must:

At his own expense and risk deliver the goods alongside the vessel in the manner usual in that port or on a dock designated and provided by the buyer; and

Obtain and tender a receipt for the goods in exchange for which the carrier is under a duty to issue a bill of lading.

Unless otherwise agreed in any case falling within subsection (1)(a) or (c) or subsection (2) of this Code section the buyer must seasonably give any needed instructions for making delivery, including when the term is F.A.S. or F.O.B. the loading berth of the vessel and in an appropriate case its name and sailing date. The seller may treat the failure of needed instructions as a failure of cooperation under this article (Code Section 11-2-311). He may also at his option move the goods in any reasonable manner preparatory to delivery or shipment.

Under the term F.O.B. vessel or F.A.S. unless otherwise agreed the buyer must make payment against tender of the required documents and the seller may not tender nor the buyer demand delivery of the goods in substitution for the documents.

(Code 1933, § 109A-2 - 319, enacted by Ga. L. 1962, p. 156, § 1.)

JUDICIAL DECISIONS

Title did not pass to the shipper's customer upon delivery of goods to the carrier where it was agreed between all parties that the seller bore the expense, not of putting the goods in possession of the carrier, but rather of transporting the goods to the place of destination. Clark v. Messer Indus., Inc., 222 Ga. App. 606, 475 S.E.2d 653 (1996).

Cited in Undercofler v. United States Steel Corp., 109 Ga. App. 8, 135 S.E.2d 69 (1964); Giant Peanut Co. v. Carolina Chems., Inc., 129 Ga. App. 718, 200 S.E.2d 918 (1973); Fratelli Gardino v. Caribbean Lumber Co., 587 F.2d 204 (5th Cir. 1979); Diamond Crystal Brands, Inc. v. Food Movers Int'l, 593 F.3d 1249 (11th Cir. 2010).

OPINIONS OF THE ATTORNEY GENERAL

Increased freight rates after contract made.

- Absent contrary agreement, seller bears risk and expense of increased freight rates after contract is made. 1969 Op. Att'y Gen. No. 69-1.

RESEARCH REFERENCES

Am. Jur. 2d.

- 67 Am. Jur. 2d, Sales, §§ 566-575.

6 Am. Jur. Pleading and Practice Forms, Commercial Code, § 2:135.

C.J.S.

- 77A C.J.S., Sales, §§ 94 et seq., 168.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 2-319.

ALR.

- What amounts to delivery f.o.b., 16 A.L.R. 597.

F.O.B. provision in sale contract as affecting time or place of passing of title, 101 A.L.R. 292.

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