CIF Contract

15 Pages 3723 Words

n reject the cargo if it is not with the conformity with the contract. Under CIF the place of ultimate delivery is the place specified in the contract. Usually this place is the place of the port of delivery. For example, the case Boks & Co Ltd V J H Rayner & Co Ltd, Lord Bankers noticed that the place of inspection was the place of ultimately delivery. In this case the cargo was shipped from Antwerp to Liverpool. Upon the arrival and inspection, the goods were rejected.
Another important obligation for the buyer is to open commercial credit. First of all, the method of payment must be specified in CIF contract of sale. Second, if the method of payment is commercial credit, than when it is going to take place is also important to be noticed. For instance, in the case of Ian Stach Ltd V Baker Bosey Ltd, the issue was whether the buyer was under the duty to open a letter of credit in flavor of seller by the beginning of the shipment period stated in the contract, or as argued by the buyer. It was sufficient for the buyer to have opened the let...