The term “Free Carrier (FCA)” is used in business agreements to refer to the buying and selling of goods. Under this term, the seller is responsible for preparing the goods for export and delivering them to the buyer’s selected carrier at a designated location. Once the goods are loaded onto the carrier, the seller’s obligations are fulfiled, and the buyer assumes responsibility for covering transportation expenses and any potential risks during the journey. The buyer has the freedom to choose any carrier for transporting the goods.
The term “Free Carrier” (FCA) is commonly used in business contracts to outline the responsibilities of both the buyer and seller in terms of delivery, payment, and risk of loss for goods. Under this term, the seller is responsible for clearing the goods for export and delivering them to the buyer’s chosen carrier at a specified location. The seller’s delivery is considered complete once the goods are loaded onto the carrier or made available to the carrier. The buyer bears the costs of carriage and has the freedom to select any carrier for transportation.
For instance, if a company in the United States wishes to purchase goods from a Chinese company, they may agree to use the FCA term in their contract. In this case, the Chinese company is responsible for clearing the goods for export and delivering them to the buyer’s chosen carrier at a designated place, such as a port. Once the goods are loaded onto the carrier, the risk of loss transfers to the buyer, who is then accountable for all carriage costs. The buyer has the flexibility to choose any carrier for transporting the goods to the United States.
Similarly, if a German company is selling goods to a French company, they may also opt for the FCA term in their contract. The German company would be responsible for clearing the goods for export and delivering them to the buyer’s chosen carrier at a specified location, such as a warehouse. Once the goods are loaded onto the carrier, the risk of loss shifts to the buyer, who assumes all carriage costs. The buyer has the freedom to select any carrier for transporting the goods to France.
These examples demonstrate how the Free Carrier (FCA) term operates in business contracts. The seller is accountable for delivering the goods to the buyer’s chosen carrier at a designated place, while the buyer bears all carriage costs from that point onward. The buyer’s ability to choose any carrier grants them greater control over the shipping process.
A Free Carrier agreement is a type of international trade contract where the seller is responsible for delivering the goods to a specified carrier or location nominated by the buyer. The seller bears the risk until the goods are delivered to the carrier.
The seller is responsible for delivering the goods to the carrier or location specified by the buyer, ensuring that the goods are properly packaged and labeled, and providing the necessary documentation for export clearance.
The buyer is responsible for arranging transportation from the carrier’s location, bearing the risk of loss or damage to the goods from the point of delivery, and handling import clearance and any associated costs.
Yes, the buyer has the flexibility to choose any carrier or location for the delivery of the goods, as long as it is agreed upon by both parties.
If the goods are damaged or lost during transportation, the risk is transferred to the buyer once the goods are delivered to the carrier. The buyer should have appropriate insurance coverage to protect against such risks.
The seller can be held liable for delays in delivery if it is due to their negligence or failure to fulfill their obligations under the agreement. However, if the delay is caused by factors beyond the seller’s control, such as natural disasters or customs delays, the seller may not be held liable.
Yes, the buyer can request additional services from the seller, such as packaging, labeling, or obtaining specific export documentation. However, any additional services may incur extra costs that need to be agreed upon by both parties.
Yes, the Free Carrier agreement can be used for both international and domestic transactions. It provides a clear framework for the delivery of goods and the allocation of risks between the buyer and the seller.
Yes, the terms of a Free Carrier agreement can be modified or customized to suit the specific needs of the buyer and the seller. It is important to clearly define the responsibilities, delivery location, and any additional services required in the agreement.
Yes, when using a Free Carrier agreement, it is important to comply with applicable international trade laws, customs regulations, and any specific requirements of the countries involved in the transaction. It is advisable to seek legal advice to ensure compliance with all relevant laws and regulations.
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: 17th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/free-carrier/
- Modern Language Association (MLA):Free Carrier. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/free-carrier/.
- Chicago Manual of Style (CMS):Free Carrier. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/free-carrier/ (accessed: May 09 2024).
- American Psychological Association (APA):Free Carrier. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/free-carrier/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts