Ex-works price refers to the cost of a product when it is sold directly from the manufacturer’s factory. It does not include any extra expenses like shipping, taxes, or insurance. The buyer is responsible for organizing and covering all transportation and other costs involved in delivering the product to its final destination.
The ex-works price refers to the cost of a product at its origin, typically the factory or warehouse. In this case, the buyer is accountable for all transportation expenses and risks involved in delivering the product to its final destination. For instance, if a US company wishes to purchase goods from a Chinese factory at an ex-works price, they would need to organize and pay for the transportation of the goods from the Chinese factory to their own warehouse or distribution center in the US. This includes all shipping costs, customs clearance fees, and any other charges or taxes that may arise during the journey. This example demonstrates how the ex-works price operates in practice, with the buyer bearing the responsibility for all expenses associated with transporting the product to their own facility. This can be a significant cost, particularly if the product is being shipped from a distant location or if any unforeseen delays or issues occur during the transportation process.
An Ex-Works price refers to the cost of goods or products at the point of origin, typically the seller’s premises. It does not include any additional costs such as transportation, insurance, or taxes.
Under an Ex-Works agreement, the buyer is responsible for arranging transportation and shipping of the goods from the seller’s premises to the desired destination.
Yes, the seller has a legal obligation to make the goods available at their premises as agreed upon in the Ex-Works agreement. They must also provide the necessary documentation and assistance to the buyer for the export of the goods.
Yes, the buyer can request the seller to arrange transportation and shipping, but any additional costs incurred will be the responsibility of the buyer.
If the goods are damaged or lost during transportation, the buyer bears the risk and is responsible for filing any necessary insurance claims or seeking compensation from the transportation provider.
The Ex-Works price only covers the cost of the goods at the seller’s premises. Any additional fees or expenses, such as packaging, loading, or documentation fees, may be charged separately by the seller.
Yes, the buyer has the right to inspect the goods before accepting them. It is advisable to include provisions for inspection in the Ex-Works agreement to avoid any disputes.
The buyer has the right to refuse the goods if they do not meet the agreed-upon specifications or if there are any defects. However, it is essential to review the terms and conditions of the Ex-Works agreement to understand the consequences of refusal.
If the seller fails to make the goods available at the agreed-upon time, it may constitute a breach of contract. The buyer may have legal remedies available, such as seeking damages or termination of the agreement.
Yes, the Ex-Works price is negotiable between the buyer and seller. It is essential to have clear communication and agreement on the price and any additional terms before finalizing the Ex-Works agreement.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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