Friday, December 15

Obligations of Seller Under C.i.f Contract

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Obligations of Seller under C.I.F Contract

By

S J Tubrazy

A seller under a contract of sale upon ` c. i. f. ‘ terms has first to ship at the port of shipment goods of the description contained in the contract ; secondly, to procure a contract of affreightment, under which the goods will be delivered at the destination contemplated by the contract ; thirdly, to arrange for an insurance upon the terms current in the trade, which will be available for the benefit of the buyer ; fourthly, to make out an invoice debitting the buyer with the agreed price, or the actual cost and commission with premiums of insurance and Line freight, as the case may be, and giving him credit for the amount of the freight which he will have to pay to the ship owner oil actual delivery, or in some similar form, and finally, to tender these documents to the buyer as soon as is reasonably possible after shipment. Against tender of these documents, the bill of lading, invoice, and policy of insurance, which completes delivery in accordance with that agreement, the buyer must be ready and willing to pay the price. In a contract for the sale of goods upon ` c. i. f. ‘ terms, the contract, unless otherwise expressed, is for the sale of goods to be carried by sea, and the seller performs his part by shipping goods of the contractual description on board a ship bound to the contractual destination, or pur­chasing afloat goods so shipped, and tendering within a reasonable time after shipment, the shipping documents, to the purchaser the goods during the voyage being at the risk of the purchaser .

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