'Under an FOB sale, the buyer is responsible for making the arrangements for shipping the goods to their destination'. (Sassoon, 1995) Thus, it had to be Carlos' obligation to make all shipping arrangements with him being the buyer of the goods. Moreover, according to the FOB contract law, the seller is not under a duty to ship the goods until he has received shipment instructions from the buyer; thus Benny was not obliged to arrange any shipment without Carlos giving him the necessary instructions. It should be added, that this is the Buyer's responsibility to arrange the shipment of goods to the port of destination.
According to s 20 of the Sale of Goods 1979, risk passes with property and in FOB sales risk passes along with property upon shipment - that is, when the goods pass the ship's rail. ...Show more