Under a contract containing a term C.I.F. or C. and F.:
(1) Where the price is based on or is to be adjusted according to “net landed weights”, “delivered weights,” “out turn” quantity or quality or the like, unless otherwise agreed the seller must reasonably estimate the price. The payment due on tender of the documents called for by the contract is the amount so estimated, but after final adjustment of the price a settlement must be made with commercial promptness.
(2) An agreement described in subsection (1) of this section or any warranty of quality or condition of the goods on arrival places upon the seller the risk of ordinary deterioration, shrinkage and the like in transportation but has no effect on the place or time of identification to the contract for sale or delivery or on the passing of the risk of loss.
(3) Unless otherwise agreed where the contract provides for payment on or after arrival of the goods the seller must before payment allow such preliminary inspection as is feasible; but if the goods are lost delivery of the documents and payment are due when the goods should have arrived. [1961 c.726 §72.3210]
Section: Previous 72.3140 72.3150 72.3160 72.3170 72.3180 72.3190 72.3200 72.3210 72.3220 72.3230 72.3240 72.3250 72.3260 72.3270 72.3280 NextLast modified: August 7, 2008