CIF contract

The CIF (cost insurance and freight contract) contract is related with the cost, insurance and freight.

Mainly the CIF contract is an exception of s .20(1) of sale of goods Act 1979. Generally if there is an express agreement that one party is to bear the risk even though he has no property, affect must given to the agreement, but in the absence of such an rule of law arising from the very nature of property[1].  In this situation there is nothing peculiar about separating the transfer of risks from the transfer of the property and this commonly happens where goods are shipped under a CIF contract.

There are some exceptional cases such as Sterns v Vickers [1923]1 KB 78  in that case there was no appropriation and court of appeal held that the risk had passed to the buyers and also the decision was approved by House of lords and so that there arise man and so that there arise man problem regarding passing of property which give a direction to a amendment of sale of goods Act 1995 [2]. Similar case is d’ Achat et de v Luis de ridder (The jullia) [1943] AC 293. 319 and  Inglis v Stock (1985) 10 App cas 263[3].

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[1] See the case of Hansen v Craig (1985) 21 d 432, 438 per load president ingils, cited by load Normand in competitor d’ Achat et de v Luis de ridder (The jullia) [1943] AC 293. 319

[2] Atiyah, Adams, Hector Atiyah’s sale of Goods 12^th edn p 343 

[3] Atiyah, Adams, Hector Atiyah’s sale of Goods 12^th edn p 344