FOB (Free on Board) and CIF (Cost, Insurance and Freight) contracts are related to international exports. These terms promotes uniformity and certainty in international commercial agreements. FOB is a far more flexible contract than of CIF. Under the British Law, in FOB the buyer has the freedom of nominating the ship, in which he wants his goods to be carried, the seller than has to put the goods on the board of that ship or vessel chosen by the buyer. The buyer has to procure a bill when the goods lands in the place of destination. In CIF contracts the seller delivers the goods to the buyer by delivering the documents of the contract to him. This confirms the seller’s delivery of the goods and not by physical delivery.
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