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HomeCommercial CodeDiv. 2Ch. 3§ 2319 F.O.B. Delivery Terms

§ 2319 F.O.B. Delivery Terms

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 2319 F.O.B. Delivery Terms

This law says who has to pay for and take care of shipping when a sale uses the terms F.O.B. (free on board) or F.A.S. (free alongside).

Key Takeaways

  • •If the term is F.O.B. the place of shipment, the seller ships the goods and pays for getting them onto the carrier.
  • •If the term is F.O.B. the place of destination, the seller pays to move the goods all the way to that place and hands them over there.
  • •If the term also says F.O.B. vessel (or car, etc.), the seller must load the goods onto the vessel and follow any bill of lading rules.
  • •If the term is F.A.S. vessel, the seller must put the goods next to the ship at the port and get a receipt for them.
  • •The buyer must give the seller any needed delivery instructions on time; if they don’t, the seller can treat it as a lack of cooperation.
  • •Payment is made by the buyer only after the seller hands over the required shipping documents; the goods themselves can’t be used as payment.

Example

A furniture store sells a sofa and the contract says "F.O.B. the buyer's warehouse".

Because the term is F.O.B. the place of destination, the store must pay to move the sofa to the buyer's warehouse and hand it over there. The buyer must give the store any needed directions on where exactly to deliver and must pay when the shipping papers are presented.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 2319 F.O.B. Delivery Terms

(1) 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 (a) 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 division (Section 2504) and bear the expense and risk of putting them into the possession of the carrier; or (b) 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 division (Section 2503); (c) When under either (a) or (b) 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 division on the form of bill of lading (Section 2323). (2) 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 (a) 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 (b) Obtain and tender a receipt for the goods in exchange for which the carrier is under a duty to issue a bill of lading. (3) Unless otherwise agreed in any case falling within subdivision (1)(a) or (c) or subdivision (2) 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 co-operation under this division (Section 2311). He may also at his option move the goods in any reasonable manner preparatory to delivery or shipment. (4) 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. (Enacted by Stats. 1963, Ch. 819.)

Last verified: January 10, 2026

Key Terms

F.O.B.free on boardF.A.S.free alongsidedelivery termbill of lading

Related Statutes

  • § 1307 Third-Party Contract Documents
  • § 2320 Cif And Cf Shipping Terms
  • § 7303 Carrier Delivery Authorization Rules
  • § 7305 Bill Of Lading Issuance
  • § 7306 Altered Bill Of Lading Enforceability

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 2319.
View Official Source