Printable Format84-2-321. 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.
History: L. 1965, ch. 564, ยง 55; January 1, 1966.
KANSAS COMMENT, 1996
This section addresses variations on the normal C.I.F. contract, defined in the previous section, under which the parties do not finally fix the price of the goods because of weight deterioration or shrinkage during transit. Because the buyer normally must pay before the goods arrive, the seller must make a reasonable estimate of the price, which the buyer pays. Final settlement is to be made later "with commercial promptness." These variations shift to the seller the risk of quality or weight deterioration; the ordinary risk of loss of the goods remains on the buyer.