CHAPTER 6 AND DELIVERY TERMS: We have been learning about delivery terms in Chapter 5. Our concern with delivery continues in Chapter 6. As before, we consider a graphic. Sometimes a picture or a timeline (or both!) might aid our understanding. Take a look at the graphic and timeline below for "F.O.B." delivery terms under the Incoterms used in international transactions. The term 'F.O.B.' is an abbreviation for "free on board". The way to remember what this means is to focus on the word 'free'. The seller is 'free' once the goods are 'on board' the ship. In the below diagram, the risk of loss remains with the seller until time T3 when the goods are physically transferred to the ship. The seller is responsible for seeing to it that the goods are loaded onto the ship. This distinguishes an F.O.B. delivery term from an F.A.S. delivery term. The term 'F.A.S.' stands for "free along side"--the seller is 'free' from liability for the goods once the goods have been delivered at T2 to the loading area alongside the ship. In an F.A.S. contract, the buyer would be responsible for seeing to the loading of the goods onto the ship. As you can see, these shipping terms hail back to the day when a large part of commerce was literally "shipped" by a ship. Now, we use words and phrase like 'to ship', 'shipping' and 'shipper' to refer to all modes of transport, including by air or by truck. The delivery terms are assigned a slightly different usage under the UCC. You need to know which version of freight and delivery terms you are using before you agree to a contract or analyze the meaning of a contract. However, starting with an example from international shipping can help to understand many different scenarios.

CASES in the TEXT on Delivery and Risk of Loss: In re Trico Steel Co., L.L.C., TEXT p. 466 | When did the delivery of the pig iron take place? Did the seller still have a right to stop delivery in transit or did the seller merely have a claim for reclamation? What is the priority of a claim to goods properly stopped in transit versus the priority of a seller of goods for a reclamation claim?