Sec. 42a-2-321. C.I.F. or C. & F.: "Net landed weights"; "payment on arrival"; warranty of condition on arrival.
Sec. 42a-2-321. C.I.F. or C. & F.: "Net landed weights"; "payment on arrival";
warranty of condition on arrival. Under a contract containing a term C.I.F. or C. & 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) 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.
(1959, P.A. 133, S. 2-321.)