Texas Business & Commerce Code - Section 2.320. C.I.F. And C. & F. Terms

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§ 2.320. C.I.F. AND C. & F. TERMS.  (a) The term C.I.F. 
means that the price includes in a lump sum the cost of the goods and 
the insurance and freight to the named destination.  The term C. &
F. or C.F. means that the price so includes cost and freight to the 
named destination.
	(b)  Unless otherwise agreed and even though used only in 
connection with the stated price and destination, the term C.I.F. 
destination or its equivalent requires the seller at his own 
expense and risk to
		(1)  put the goods into the possession of a carrier at 
the port for shipment and obtain a negotiable bill or bills of 
lading covering the entire transportation to the named destination;  
and
		(2)  load the goods and obtain a receipt from the 
carrier (which may be contained in the bill of lading) showing that 
the freight has been paid or provided for;  and
		(3)  obtain a policy or certificate of insurance, 
including any war risk insurance, of a kind and on terms then 
current at the port of shipment in the usual amount, in the currency 
of the contract, shown to cover the same goods covered by the bill 
of lading and providing for payment of loss to the order of the 
buyer or for the account of whom it may concern;  but the seller may 
add to the price the amount of the premium for any such war risk 
insurance;  and
		(4)  prepare an invoice of the goods and procure any 
other documents required to effect shipment or to comply with the 
contract;  and
		(5)  forward and tender with commercial promptness all 
the documents in due form and with any indorsement necessary to 
perfect the buyer's rights.
	(c)  Unless otherwise agreed the term C. & F. or its 
equivalent has the same effect and imposes upon the seller the same 
obligations and risks as a C.I.F. term except the obligation as to 
insurance.
	(d)  Under the term C.I.F. or C. & F. unless otherwise agreed 
the buyer must make payment against tender of the required 
documents and the seller may not tender nor the buyer demand 
delivery of the goods in substitution for the documents.

Acts 1967, 60th Leg., p. 2343, ch. 785, § 1, eff. Sept. 1, 1967.           

Last modified: August 10, 2007