The Nature Of CIF Contracts

CIF contracts include cost, insurance and freight. A CIF contract is a type of contract which is more widely and more frequently in use than any other contract used for the purposes of seaborne commerce. An enormous number of transactions, in value amounting to untold sums, are carried out every year under CIF contracts. Hence, due to the importance of the CIF contract with regard to international sales contracts by sea, I will try to briefly summarize the nature of CIF contracts.

Under CIF contracts, the seller charges an inclusive price covering the cost of the goods, freight and insurance. Therefore, the obligations of the vendor under CIF contracts can be summarized as follows: Firstly to ship from the port of shipment the contracted goods; secondly to procure a contract of affreightment, under which the goods will be delivered at the agreed destination; thirdly to arrange for insurance which will be available for the benefit of the buyer; fourthly to make out