RoaldDahl
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LSDefine
Simple English definitions for legal terms
carriage paid to
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A quick definition of carriage paid to:
Term: CARRIAGE PAID TO
Definition: When someone buys something from another person who lives far away, they need to figure out how to get the thing they bought to their own home. Carriage paid to is a way to describe who is responsible for getting the thing to the buyer's home. When a seller agrees to carriage paid to, it means they will make sure the thing the buyer bought is sent to the buyer's chosen carrier (like a truck or a ship) and the seller will pay for the cost of sending it to the buyer's home. Once the thing is given to the carrier, the seller's job is done and the buyer is responsible for anything that happens to the thing during the rest of the journey. This can be used for any way of sending things, like by truck or by ship.
A more thorough explanation:
Definition: Carriage paid to (CPT) is a term used in commercial contracts that outlines the responsibilities of the buyer and seller regarding the delivery, payment, and risk of loss of goods. The seller is responsible for clearing the goods for export, delivering them to the buyer's chosen carrier, and paying for the costs of carriage to the named destination. Once the goods are delivered to the carrier, the seller's delivery is complete, and the risk of loss passes to the buyer. Any mode of transportation can be used to carry the goods.
Example: A company in the United States agrees to sell 1000 widgets to a company in Japan. The contract states that the terms are CPT Tokyo. The seller is responsible for clearing the goods for export, delivering them to the carrier, and paying for the costs of carriage to Tokyo. Once the goods are delivered to the carrier, the seller's delivery is complete, and the risk of loss passes to the buyer.
Explanation: In this example, the seller is responsible for all the costs associated with delivering the goods to Tokyo, including transportation costs. The buyer is only responsible for paying for the goods once they arrive in Tokyo. If anything happens to the goods during transportation, the seller is responsible for any losses or damages.