Terms used in Connection with Buying and Selling

1. Carriage paid: When this term is used, it means that the cost of carrying goods is included in the quoted price.

2. Gross profit: This is the price of the article before the deduction of the cash.

3. Trade Fair: This is a market for the advertisement and exhibition of goods.

4. Net profit: This is the price of the articles after deducting the discount from the gross price.

5. Warehouse: If the cost of an item is stated ex-warehouse, it means the cost of the goods only is stated in the factory warehouse.

6. Free on Rail (FOR): When this is quoted in an invoice, it means the supplier will pay carriage to the nearest railway station, to the purchaser.

7. Free on board (FOB): When FOB is quoted on the sales document; it means the cost of goods includes carriage on the ship to the nearest port, to the purchaser.

8. Cost, insurance, and freight (CIF): This term is applicable to goods received from abroad. The supplier bears the cost, insurance, and delivery of the goods.

9. Bill of lading: This is a contract of carriage of goods to foreign trade, between an exporter and the shipping company. It is a document of the title. It gives the purchaser of goods the authority to claim the goods, on arrival at the port.

10. Tender: This is a special quotation sent by competing bodies, in reply to an enquiry showing specifications and estimates, for the execution of a job, for example, building a school, market, or bridge.