70A-2-320. C.I.F. and C.&F. terms.
(1) 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.
(2) 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
(a) 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
(b) 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
(c) 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
(d) prepare an invoice of the goods and procure any other documents required to effect
shipment or to comply with the contract; and
(e) forward and tender with commercial promptness all the documents in due form and
with any indorsement necessary to perfect the buyer's rights.
(3) 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.
(4) 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.
Enacted by Chapter 154, 1965 General Session
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Last revised: Thursday, May 28, 2009