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C.F.&I.

seller buyer insurance abbreviation

An abbreviation for cost, freight, and insurance that is used in a sales contract to indicate that the purchase price quoted for the goods by the seller includes the expense incurred by the seller for shipment of such goods and for insurance of the goods against loss or destruction until their arrival at the destination named by the buyer.

The abbreviation C.F.&I. is synonymous with the abbreviation C.I.F. commonly found in contracts for foreign shipments. A seller who has entered a sales contract with a C.F.&I. provision agrees to accept the expense of placing the goods into the custody of a carrier for shipment from their port of origin to their designated location and to obtain a negotiable bill of lading, which will be endorsed by the buyer upon receipt of payment for the goods. The seller has the responsibility of loading the cargo and obtaining a receipt from the carrier, which might be incorporated into the bill of lading to show that freight has been paid by him or her. The seller must also purchase insurance against the loss, damage, or destruction of such goods and have the buyer designated as the beneficiary. The seller prepares an invoice of the goods to be shipped and sends the necessary documents to both the shipper and the buyer so that the buyer can take delivery of the goods upon arrival at their destination.

CROSS-REFERENCES

Shipping Law.

C.J. [next]

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