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The documents include (as a minimum) the invoice, the insurance policy, and the bill of lading. These three documents represent the cost, insurance, and freight of CIF. The seller's obligation ends when the documents are handed over to the buyer. Then, the buyer has to pay at the agreed price.
Where a seller has to refund the price paid, then the seller must also pay interest to the buyer from the date of payment. [62] It has been said the interest rate is based on rates current in the seller's State '[s]ince the obligation to pay interest partakes of the seller's obligation to make restitution and not of the buyer's right to claim ...
If the same seller issued a price quote of "$5000 FOB Miami", then the seller would cover shipping to the buyer's location. International shipments typically use "FOB" as defined by the Incoterms standards, where it always stands for "Free On Board". Domestic shipments within the United States or Canada often use a different meaning, specific ...
The fee is usually taken out of the invoice amount as a percentage. For example, if the factoring fee is 2 percent and the invoice amount is $10,000, the charge would be $200.
According to the PMBOK (7th edition) by the Project Management Institute (PMI), Fixed Price Economic Price Adjustment Contract (FPEPA) is a "fixed-price contract, but with a special provision allowing for predefined final adjustments to the contract price due to changed conditions, such as inflation changes, or cost increases (or decrease) for special commodities".
However, in many industries, the "invoice cost" actually varies from the "net purchase cost," or the actual price of a product. The invoice cost of a product is the price that the merchant pays for the product before marking it up to sell. The invoice cost is sometimes used in industries such as automobile sales to entice customers to buy.
Image 1: After a contract is concluded between a buyer and a seller, the buyer's bank supplies a letter of credit to the seller. Image 2: The seller consigns the goods to a carrier in exchange for a bill of lading. Image 3: The seller provides the bill of lading to the bank in exchange for payment. The seller's bank then provides the bill to ...
Buyers aren’t the only ones who pay closing costs — both the buyer and the seller are responsible for at least some amount. Typical closing costs for sellers can include transfer taxes and ...