If you're unsure as to what location to indicate in a contract, or unsure what a contract price basis term means and how it is settled, here's a quick guide to their definitions.
Delivered: means delivered to a Site, Port or Delivered Buyer location nominated in the contract, with title passing at the time of transfer.
When creating a contract with Delivered selected as its Price Basis, ownership is commonly exchanged at the destination and you should therefore choose the destination as the Location (see Create a contract).
FOB Farm / Ex-Farm: means the goods are delivered when loaded upon an appropriately presented form of transportation at the Seller's nominated farm.
When creating a contract with FOB Farm (Ex-Farm) selected as its Price Basis, ownership is commonly exchanged at the origin, often your farm, and so you should therefore choose the origin location as the Location (see Create a contract).
Free on Board (FOB) / Free on Truck (FOT): means that the Seller must deliver the goods into an appropriately presented truck(s); and Ownership and title passing at the time when the goods are loaded onto the relevant method of transport and accepted by the carrier via the appropriate transport documents.
When creating a contract with FOB (FOT) selected as its Price Basis, ownership is commonly exchanged at the origin, often your farm, and so you should therefore choose the origin location as the Location (see Create a contract).
💡Note: These definitions are for guidance purposes only and do not form part of your contract terms. For information relating to your specific contract, please refer to your specific contract terms.
Reference:
Grain Trade Australia: www.graintrade.org.au
International Chamber of Commerce: https://iccwbo.org