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ID number:835374
Evaluation:
Published: 23.12.2003.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
Extract

Cases of CIF contracts
The first reported case was Tregelles v. Sewell in 1862. In this case the seller was obliged to deliver the goods to the destination. In fact, the contract was for 300 tons of rails delivered to Harburgh. The seller did not deliver the goods to Harburgh, but he delivered all the documents. As we have seen before, the CIF contract of sale implies delivery to the ship, not the port of discharge.
So, in this case we see that the risk is of the purchaser. Why? This is because there is unclear evidence that the money is paid. So, the rule in this case is for the property to pass on tender of documents, after the passing of risk.
Second, there is case called "Ireland v. Livingston (1872)", in which the main problem was in "to cover cost, freight, and insurance, payment by acceptance on receiving shipping documents". Here, the seller bears the risk of freight and insurance. In addition, "Should the ship arrive with the goods on board he will have to pay the freight, which will make up the amount he has engaged to pay. Should the goods not be delivered in consequence of a peril of the sea, he is not called on to pay the freight, and he will recover the amount of his interest in the goods under the policy. In substance, therefore the consignee pays, through in a different manner, the same price as if the goods had been bought and shipped to him in the ordinary way".
Third, in the case "The Julia (1949)", which is a case about a sale of part of a bulk parcel of rye, the property in the goods never passed to the purchaser, who had repaid the price. More specifically, we find here non-performance on the part of the seller. …

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