What Is the Definition of “freight Allowed”?
Freight allowed describes an agreement between a buyer and a seller, in which the buyer pays for the cost of shipping, and the seller deducts this from the invoice. This means that the obligation of the seller is to ensure that the goods arrive at the buyer’s destination but not after this.
This term is typically used to describe the shipping agreements where both parties are some distance from each other. In such instances, it becomes vital to define how the shipments are carried out. This gives the buyer enough room to figure out how to organize for shipment. This eliminates instances such as where the buyer thinks that the seller is covering the cost of transporting the goods they bought, only to find out later that this is not the case. This has the potential to increase the risk of loss, as well as the total cost of the transaction.
To find out whether a particular shipment may be sent on a freight-allowed basis, a person needs to consult the seller. One may also find this information by inspecting the terms of sale before committing to buying a particular item. This is recommended to reduce the risk of complications, such as delays in delivery of the goods.