cost, insurance, and freight

A mercantile term, abbreviated "c. i. f." or "c. a. f." which, when used in connection with a contract for the sale of goods, indicates that the price quoted to the purchaser includes the cost of the goods, the cost of insurance thereon, and freight charges to the place of destination. 46 Am J1st Sales § 136. Under a c.i.f. contract the seller receives a purchase price payable as the parties agree and for that consideration is bound to arrange for the carriage of the goods to their agreed destination, for insurance upon them for the benefit of the buyer, and either to pay the cost of the carriage and insurance or allow it or the purchase price. When this has been done the seller has fully performed and is entitled to he paid upon delivery of the documents to the seller regardless of whether the goods themselves have arrived at their destination or ever will. It has been said that a c.i.l. contract is one for the sale of documents relating to goods rather than a sale of the goods but it seems more realistic to treat such a contract as one under which the title to the goods passes to the buyer upon delivery of the documents alone. Warner Bros. & Co. v Israel (CA2 NY) 101 F2d 59.