A privately arranged contract that specifies the price for a transaction in the future. It differs from ‘futures’ in that it is not standardised and is not traded on organised exchanges. Each party bears the other’s credit risk.
***
An agreement for insurance to come into force at some future date.
Tag: RAW
Forward Exchange Rate Cover
Credit insurance against the exporter’s risk of loss from an unfavorable movement in the rate of exchange.
Forward-looking statement safeharbor
Refers to a provision in the PSLRA that protects corporations and their directors and officers when making written or oral forward-looking statements. Pursuant to this safeharbor, no liability exists with respect to a forward-looking statement that, when made, is identified as forward-looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the statement. Alternatively, the statute also provides that a person making a written or oral forward-looking statement will not be liable for that statement unless a plaintiff proves that the person made the statement with actual knowledge that it was false or misleading. The safeharbors do not apply to various types of forward-looking statements, including such statements in GAAP financial statements, in an IPO registration statement, in connection with a tender offer or a partnership, in certain change-in-control disclosure statements, in a going private transaction, or by a non-SEC reporting company.
Forwarder / Freight Forwarder / Foreign Freight Forwarder
An independent business that dispatches shipments for exporters for a fee. The firm may ship by land, air or sea or it may specialize. Usually it handles all the services connected with an export shipment; preparation of documents, booking cargo space, warehouse, pier delivery and export clearance. The firm may also handle banking and insurance services on behalf of a client
Forwarding Charges
Expenses of carriage of cargo to destination from a place of refuge or port of forced discharge.
Forwarding charges clause
Institute Cargo Clause 12. Where, as a result of an insured peril, the transit is terminated short of the destination, the underwriter will reimburse the insured for any extra charges incurred in unloading, storing and forwarding the goods to their destination. The clause does not apply to general average or salvage. Forwarding charges due to insolvency or financial default are excluded.
FOT (free on trucks)/FOR (free on rails)
Seller pays all charges and loads goods on truck or rail, retaining the risk of damage until delivery to the carrier or railway agent. The buyer is responsible after such delivery and for further charges including insurance.
Foul Bill of Landing
A receipt of goods issued by a carrier with an indication that the goods were damaged when received.
Foundation Exclusion Clause
A provision in a Fire Insurance contract which provides that the value of the foundation is not to be included when determining the value of the property at the time of a loss.
Foundation exclusion clause (Property Insurance)
A clause found in fire insurance, stating that the value of a property’s foundation will not be calculated in the total property value after a loss.