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[kevin oleary]
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Simple English definitions for legal terms
ex-works price
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A quick definition of ex-works price:
Ex-works price: This is a term used to describe the price of a product when it is sold directly from the manufacturer's factory. It does not include any additional costs such as shipping, taxes, or insurance. Essentially, the buyer is responsible for arranging and paying for all transportation and other costs associated with getting the product from the factory to its final destination.
A more thorough explanation:
Definition: Ex-works price refers to the price of a product at the point of origin, which is usually the factory or warehouse. This means that the buyer is responsible for all transportation costs and risks associated with getting the product from the point of origin to the final destination.
Example: If a company in the United States wants to purchase goods from a factory in China at an ex-works price, they would be responsible for arranging and paying for the transportation of the goods from the factory in China to their own warehouse or distribution center in the United States. This includes all costs associated with shipping, customs clearance, and any other fees or taxes that may be incurred along the way.
Explanation: The example illustrates how an ex-works price works in practice. The buyer is responsible for all costs associated with getting the product from the factory to their own warehouse or distribution center. This can be a significant expense, especially if the product is being shipped from a distant location or if there are any unexpected delays or issues that arise during the transportation process.