Dictionary of Procurement Terms

Welcome to the NIGP Online Dictionary of Procurement Terms, the comprehensive reference for public purchasing terms and concepts.

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Search Results: 991-1000 of 2469 results

  • Fraud

    An intentional concealment, omission, or perversion of truth for the purpose of inducing someone to rely upon it and part with something of value or surrender a legal right. The three necessary elements of a cause of action for fraud are: (1) False representation of a present or past fact on the part of the defendant, (2) A plaintiff’s action in reliance upon that misrepresentation, and (3) Damage resulting to the plaintiff from the action that was based on the misrepresentation. (Black’s Law Dictionary, 1990)

  • Free Alongside Ship (FAS)

    A price that includes the cost of transportation and delivery to the side of the vessel, within reach of its loading tackle, at the specified port of shipment, with the purchaser’s liability beginning at that point.

  • Free Astray

    A shipment misrouted or unloaded at a wrong destination that is forwarded to the correct destination free of extra charges.

  • Free Enterprise

    The system of business in which individuals are free to decide what to produce, how to produce it, and at what price to sell it. (Business, 2002)

  • Free on Board (F.O.B.) Desintation, Freight Prepaid and Allowed

    Title passes at destination, and seller pays the freight.

  • Free on Board (F.O.B.) Destination

    Title changes hands from the supplier to the public entity at the destination of the shipment when the public entity signs for the goods; the supplier owns the goods in transit, assumes responsibility for carrier selection, and files any claims for damages incurred during this period. It does not address the responsibility for the cost of transportation (freight charges), which must be specified with the inclusion of additional language.

  • Free on Board (F.O.B.) Destination, Freight Collect

    Title passes at destination, and buyer pays the freight.

  • Free on Board (F.O.B.) Destination, Freight Collect and Allowed

    Title passes at destination, and buyer pays the freight and deducts it from the seller’s invoice.

  • Free on Board (F.O.B.) Destination, Freight Prepaid and Added

    Title to the goods passes from the supplier to the agency at the point of destination and supplier pays the freight expense and then adds the freight expense to the agency's invoice. Supplier owns goods in transit and files claims, if any.

  • Free on Board (F.O.B.) Origin

    Title changes hands from the supplier to the public entity at the origin of the shipment. In this scenario, the public entity owns the goods in transit, assumes responsibility for carrier selection, and files any claims for damages incurred during this period. It does not address the responsibility for the cost of transportation (freight charges), which must be specified with the inclusion of additional language.

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