..............refers to a contract between the seller and the buyer in which all the expenses up to the point of delivery to a carrier (it may be a ship, rail, lorry, etc.) are to be borne by seller.

Free on Board

The correct answer is option 2- Free on Board.

Free on Board or Free on Rail (FoB or FOR):- It refers to a contract between the seller and the buyer in which all the expenses up to the point of delivery to a carrier (it may be a ship, rail, lorry, etc.) are to be borne by seller.

OTHER OPTIONS-

• Cash on delivery (COD):- It refers to a type of transaction in which payment for goods or services is made at the time of delivery. If the buyer is unable to make payment when the goods or services are delivered then it will be returned to the seller.

• Cost, Insurance and Freight (CFF):- It is the price of goods which includes not only the cost of goods but also the insurance and freight charges payable on goods upto destination port.

• Errors and Omissions Excepted(E&OE):- It refers to that term which is used in trade documents to say that mistakes and things that have been forgotten should be taken into account