CIF Contract

15 Pages 3723 Words

document of title to the goods, giving the transferee the right to possession of goods. The insurance policy must cover the goods from the moment when they are load on the board until the buyer receives them. According to the Icoterms 1990, the seller must "A3 (b) Obtain at his own experience cargo insurance as agreed in the contract, that the buyer, or any other person haying an insurable interest in the goods, shall be entitled to claim directly from the insurer and provide the buyer with the insurance policy or other evidence of insurance cover". Next, the seller's invoice is very important too. This is because the buyer must receive the same invoice in order to pay the cargo. Another important duty for the seller is to obtain all export licenses. This means the seller is obliged to get any approval to export the goods, and the buyer to get also approval to import the goods. In addition, because section 18 of the Sale of Goods Ordinance states that goods must be ascertained before property can pass, in the case of individual shares of goods carried in bulk, it would seem that the property passes when the goods are discharged and in some way appropriate to the contract.
Considering all above, the CIF contract of sale imposes more obligations to the buyer. In other words, this kind of contract gives responsibility to the seller to deliver the goods the buyer as a part of the contractual price. The right for passing of property and risk will be discussed in more details below.

The duties of the Buyer

Even though, the seller as a party of CIF has more obligations, the buyer has also obligations, which are the following:
· To examine the goods
· To open a commercial credit in the sellers favor
· To nominate a ship.
Generally the buyer is not under a duty to examine or to inspect the cargo. In fact, the buyer has obligation to inspect the cargo upon the delivery at the place of destination. So, this means that the buyer ca...