70A-2-320 - C.I.F. and C.&F. terms.
70A-2-320. C.I.F. and C.&F. terms.
(1) The term C.I.F. means that the price includes in a lump sum the cost of the goods andthe insurance and freight to the named destination. The term C.&F. or C.F. means that the priceso includes cost and freight to the named destination.
(2) Unless otherwise agreed and even though used only in connection with the statedprice and destination, the term C.I.F. destination or its equivalent requires the seller at his ownexpense and risk to
(a) put the goods into the possession of a carrier at the port for shipment and obtain anegotiable bill or bills of lading covering the entire transportation to the named destination; and
(b) load the goods and obtain a receipt from the carrier (which may be contained in thebill of lading) showing that the freight has been paid or provided for; and
(c) obtain a policy or certificate of insurance, including any war risk insurance, of a kindand on terms then current at the port of shipment in the usual amount, in the currency of thecontract, shown to cover the same goods covered by the bill of lading and providing for paymentof loss to the order of the buyer or for the account of whom it may concern; but the seller mayadd to the price the amount of the premium for any such war risk insurance; and
(d) prepare an invoice of the goods and procure any other documents required to effectshipment or to comply with the contract; and
(e) forward and tender with commercial promptness all the documents in due form andwith any indorsement necessary to perfect the buyer's rights.
(3) Unless otherwise agreed the term C.&F. or its equivalent has the same effect andimposes upon the seller the same obligations and risks as a C.I.F. term except the obligation as toinsurance.
(4) Under the term C.I.F. or C.&F. unless otherwise agreed the buyer must makepayment against tender of the required documents and the seller may not tender nor the buyerdemand delivery of the goods in substitution for the documents.
Enacted by Chapter 154, 1965 General Session