CIF Contract Involves a Lot of Documents Problematic or Not

Question: Do you find the fact that a CIF contract involves a lot of documents problematic or not? Answer: Introduction CIF stands for cost, insurance and freight. It is a trade term required by the seller to arrange carriage of goods to a certain port of destination by sea, and certain necessary documents are provided to the buyer, to obtain goods from the carrier. The CIF contract imposes a variety of duties to the seller. It is a contract which includes the sale and shipment of the goods to a desired destination and payment is made by presenting the required documents of a contract. As per this CIF contract more obligations are with the seller as compared to a buyer. Goods should be shipped according to the contract, to arrange the carriage of goods, invoice to be made for the buyer and the documents to be tender to the buyer, are the duties and obligation to be examined by both the buyer and seller. According to Federal law 18of 1993 if sale is the one which compromises of the covering price of the item sold, insurance charges of the goods and carriage of the goods from port to destination. This contract of sale agrees vendor to ship the goods at port of shipment, also contract a bill of landing under which the goods are delivered to the required destination, to arrange insurance for the benefit of the purchaser, to make a commercial invoice and finally the documents are handed over to the buyer when he is will to pay for the shipped goods. Hence title of goods passes with the receiving of the documents by the buyer. The risk passes on the ship, but possession of the goods is done when the buyer pays the price in exchange of documents. The buyer being not the party of the contract has no right to sue the carrier for breach of contract, it is the seller who arrange for carriage of goods. The seller must tender documents to the buyer, including insurance policy, an invoice and a clean shipped bill of landing. The documents are very important as the buyer will pay the amount in exchange of the documents, hence due to its scarcity the documents should be accurate. Any discrepancies in the document delay in the handover of the goods and cause legal problems. The purchaser has to pay for the goods against tender of the documents, if there is a loss or damage to the goods at sea after shipment, the buyer can claim vendor under the contract of sale, but can claim any loss through an insurance policy. As per article 150 of the commercial transaction law, if the buyer refuses to pay the bill against documents without any legitimate reason, then he is liable to compensate the vendor for its damages. Conclusion Furthure ,we can concluded documents play a major role in the CIF contract .Purchaser cant refuse for the documents and demands for the possession of goods from the vendor and also vendor can t hold the documents and deleiver the goods('A Study On The Interpretation Of Permuted CIF Contract' (2007) 19 SungKyunKwan Law Review.) .Th CIF contract is completely fulfilled with the deleivery of documents not only with the deleivery of goods. References: Brazier M, 'Symposium: Reference Documents On The Ethics And Laws Of Human Reproduction. Surrogacy: Review For The UK Health Ministers Of Current Arrangements For Payments And Regulation' (1997) 3 Human Reproduction Update Bridge M, 'Documents And Cif Contracts' (2012) 1998 ac Lee R and Waterson G, 'Contract: Interpretation Of Standard Form Of Sub Contract' (2001) 19 Property Management Theofanos M, 'A Practical Guide To The CIF' (2006) 13 interactions