Basics of CIF Contract and Contracts of Carriage

International Commercial Sales,
more specifically CIF contracts
and Contracts of Carriage

INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Basics of CIF Contract.................................................................................................................3
TASK...............................................................................................................................................4
Where does property in the olive oil lie.......................................................................................5
Can Dave sue Jane for payment...................................................................................................5
CONCLUSION................................................................................................................................6

INTRODUCTION
CIF contract are those type of contract in which an agreement of selling goods at a price
inclusive of cost of goods, insurance coverage and freight. Under these contract seller is
responsible for selling of goods and also transferring of title of goods. These contracts are very
important from point of view of doing business and also selling of goods and product through
water. It cover wider scope because of its tendency to cover goods and products selling. In this
file a case has been given and questions regarding it are required to be answered.
MAIN BODY
Basics of CIF Contract
In a CIF contract the seller is responsible over supplying of goods, insuring them and
making them get shipped. Full form of this contract is cost, insurance and freight. As, per the
contract of CIF. It involved the seller entering into sale contract as well as into insurance, and
carriage contract. In this type of contract seller is being involved only after entering into sales of
contract. This means such contract can be formed only after the contract of sales. The seller is
required to fix a price for covering all the costs and the risk has to be carried of fluctuation isn
there under insurance and costs involved in it. Under the CIF contract seller has to undertake
responsibility of transportation with insurance cover in it the name of the port or destination.
Until the agreement has been done by the buyer for paying for the goods and its delivery, the
tender of shipping documents can be done. That is why such contract’s indication has to be
firstly over sales of documents. Seller is required to perform his part of bargain through
documents to be tendered in correct manner. Only on condition is required to be kept in mind
that the duty should be under negative impact to preventing delivery of goods (Mahdavian and
Maruthi, 2018).
The Importance of the Documents
Documents play an important role in the CIF contract and this has given the contract with
its special characteristics or alternative. This leads towards the formation of contract for sales of
documents. Seller is require to perform those contract through which tendering of buyer and the